Under the Temporal Method of Translating Foreign Currency Financial Statements

question 29

Multiple Choice

Under the temporal method of translating foreign currency financial statements, what exchange rate should be used for cost of goods sold?

• A) Spot rate at the end of the year
• B) Average rate during the year
• C) Spot rate mid-year
• D) There is no single rate that can be used for this purpose

---

Definitions:

Susceptibility

The likelihood or tendency to be affected by something, typically in a negative way, such as disease, harm, or influence.

Incidence

A measure of the occurrence of new cases of a disease or event in a population over a specified period of time.

Menopause

The time in most women's lives when menstrual periods stop permanently, marking the end of reproductive capability.

Menarche

The first occurrence of menstruation in a female, signaling the beginning of reproductive capability.