Under International Accounting Standards Board Rules, What Method Is Required

question 36

Multiple Choice

Under International Accounting Standards Board rules, what method is required to account for foreign currency transactions?

• A) A one-transaction perspective must be used.
• B) The two-transaction perspective must be used.
• C) A sale is not recorded until payment is received and converted to U.S. dollars.
• D) A sale is not recorded until payment is received in the foreign currency.

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Definitions:

Andes

A major mountain range along the western edge of South America, formed by the subduction of the Nazca Plate beneath the South American Plate.

Pyroclastic Flows

Fast-moving currents of hot gas and volcanic materials (such as ash and rock fragments) that flow down the slopes of a volcano during an explosive eruption.

Mudflows

Rapid flows of water-saturated earth material, primarily composed of mud and often triggered by heavy rains or volcanic activity.

River Valley

a long, narrow region carved by river erosion, often surrounded by hills or mountains.