Which of the Following Is Not True If the Functional

question 20

Multiple Choice

Which of the following is not true if the functional currency of a foreign operation is U.S. dollars?

• A)All balance sheet items that were carried at current or future exchange prices are translated at the current exchange rate.
• B)All balance sheet items carried at past prices are translated at exchange rates existing at the time the item was acquired.
• C)All income statement items are translated at the average exchange rate for the reporting period.
• D)Exchange gains and losses arising from translation from the currency of record into the functional currency are recognized on the income statement.