Which of the Following Statements About the Current Rate Method

question 39

Multiple Choice

Which of the following statements about the Current Rate method is false?

• A)Translation involves restating the functional currency amounts into the reporting currency.
• B)All assets and liabilities are translated at the current rate.
• C)If the subsidiary maintains their books in their functional currency,the current rate method is used.
• D)The effect of exchange rate changes are reported on the income statement as a foreign exchange gain or loss.

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Definitions:

Low-Mach

Low-Mach refers to individuals with a low Machiavellian orientation in personality psychology, characterized by honesty, trustworthiness, and a preference for not manipulating others for personal gain.

Type A Personality

A temperament characterized by high levels of competitiveness, self-driven urgency, and a constant sense of time pressure.

High-Achieving

Relating to individuals or groups that consistently exceed standard expectations or goals.

Multi-Tasker

An individual capable of handling multiple tasks simultaneously with efficiency.