According to the Current-Rate Method of Translating Foreign Currency Financial

question 34

Multiple Choice

According to the current-rate method of translating foreign currency financial statements,

• A) current assets and liabilities are translated at current exchange rates, and other assets, liabilities and owner's equity are translated at historical exchange rates.
• B) only those assets carried at past exchange prices should be translated at the historical rate.
• C) only owner's equity is translated at historical exchange rates.
• D) translation losses are taken to income, but translation gains are deferred.

---

Definitions:

Government Subsidies

Financial assistance provided by the government to businesses, individuals, or institutions to support economic activities deemed beneficial.

Sockeye Salmon

A species of salmon found in the Pacific Ocean, known for its red flesh and considered a significant fishery resource.

Individual Transferable Quotas

Regulatory tools in environmental policy and fisheries management, allowing for the controlled production or harvest of resources by assigning quotas that can be traded among individuals.

Total Allowable Catch Policies

Regulations determining the maximum quantity of a particular species of fish that can be caught over a certain period of time to prevent overfishing.