When the Current Rate Method Is Used, the Sign

question 51

Multiple Choice

When the current rate method is used, the sign (+ or -) of the translation adjustment is the result of:

• A) appreciation or depreciation of the foreign currency.
• B) the nature of the balance sheet exposure.
• C) both (A) and (B).
• D) None of the above

---

Definitions:

Major Account Groups

Categories used in accounting to organize and summarize financial transactions, including assets, liabilities, equity, revenue, and expenses.

Basic Chart

A visual representation of data designed to display simple information clearly and concisely, often used in reporting and analysis.

Account Number

An Account Number is a unique identifier assigned to each account within a bank or financial institution, facilitating the management, tracking, and distinction of transactions.

Chart Of Accounts

A systematic list of all account titles and numbers being used by an organization to organize financial statement information.