When Translating the Revenue and Expenses in the Statement of Profit

question 16

Multiple Choice

When translating the revenue and expenses in the statement of profit or loss and other comprehensive income, theoretically each item of revenue and expense should be translated using the spot exchange rate between the:

• A) functional currency and the foreign currency on the reporting date;
• B) presentation currency and the functional currency on the reporting date;
• C) functional currency and the foreign currency on the date the transaction occurred;
• D) presentation currency and the local currency on the transaction date.

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Definitions:

RCMP

The Royal Canadian Mounted Police, Canada's national police service, known for its law enforcement, public safety, and national security efforts.

Uber

A ride-sharing company that connects passengers with drivers of vehicles for hire and delivery services via a mobile app.

Ford

An American multinational automaker known for revolutionizing the automobile industry through the introduction of the moving assembly line technique.

Harassment

Unwanted conduct affecting the dignity of individuals or groups, which can create hostile or offensive environments.