Financial Statements Can Be Presented in Any Currency

question 41

Multiple Choice

Financial statements can be presented in any currency. When the currency selected for presentation purposes differs from an entity's functional currency, the financial statements need to be translated into this selected presentation currency. Which of the following statements regarding the translation of the financial statements into a presentation currency is FALSE?

• A)Assets and liabilities (including comparatives)are translated at the closing rate at the date of the statement of financial position.
• B)Income and expenses (including comparatives)for each statement of comprehensive income presented are translated at exchange rates at the dates the transactions took place.
• C)Income and expenses (including comparatives)for each separate income statement presented are translated at exchange rates at the dates the transactions took place.
• D)All resulting exchange differences are recognized in income.

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Definitions:

Sociocultural Theory

The concept that cognitive development is heavily influenced by social interactions and cultural practices.

Cognitive Development

The process by which a person learns to reason, solve problems, and understand the world around them through stages, as proposed by theorists like Piaget.

Vygotsky

A seminal theorist in developmental psychology, known for his emphasis on the sociocultural influences on cognitive development.