According to the Current-Rate Method of Translating Financial Statements

question 7

Multiple Choice

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

• A) all balance sheet accounts except capital stock are translated at the historical exchange rate.
• B) every income-statement account is multiplied by the average exchange rate.
• C) translation gains or losses are taken to the income statement.
• D) all balance sheet accounts are translated at the current exchange rate.

---

Definitions:

Natural Resources

Assets occurring in nature, such as mineral deposits, timber tracts, oil, and gas

Tangible Assets

Physical assets that hold value, such as land, buildings, vehicles, equipment, and inventory.

Operating Rights

The granted permissions or authorizations for a company to conduct specific operations within a regulatory or legal framework.

Natural Resources

Physical or material resources occurring in nature that can be used for economic gain, such as water, timber, coal, oil, and minerals.