According to Which Method Is the Translation Gain or Loss

question 23

Multiple Choice

According to which method is the translation gain or loss taken to the income statement?

• A) the current rate method
• B) the consolidation method
• C) the temporal method
• D) the transcription method

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Definitions:

Net Cash

The difference between the cash inflows and outflows in a given period, indicating the net change in a company's cash position.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of a company, as reflected in its cash flows.

Free Cash Flow

The amount of cash a company produces through its operations, after subtracting the cost of expenditures on assets.

Net Cash

The difference between a company’s total cash inflows and cash outflows in a given period.