Which of the Following Methods Uses the Current Exchange Rate

question 2

Multiple Choice

Which of the following methods uses the current exchange rate to consolidate all accounts of a foreign subsidiary into the financial statements of its parent?

• A) Current rate method
• B) Temporal method
• C) Current/non-current method
• D) None of the above

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Definitions:

Interest Rate

The fee, represented as a proportion of the principal amount, that a lender imposes on a borrower for the utilization of assets.

Initial Cash Balance

The amount of cash a company has at the beginning of a specific accounting period.

Weekly Disbursements

The process of distributing funds or payments on a weekly basis.

Trading Costs

Expenses associated with buying and selling securities, including brokerage fees, commissions, and taxes.