Which of the Following Statements About the Temporal Method Is

question 40

Multiple Choice

Which of the following statements about the temporal method is true?

• A)The accounting exposure is always a net asset balance.
• B)The accounting exposure is always a net liability balance.
• C)The proportionate amounts of various assets and liabilities change after the statement of financial position is translated.
• D)The temporal method and the current rate method both yield the same exchange gain or loss.

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