Under the Presentation Currency Translation (PCT) Method, Which of the Following

question 52

Multiple Choice

Under the presentation currency translation (PCT) method, which of the following statements is correct?

• A) All balance sheet items excluding shareholders equity are translated using the closing rate in effect at the balance sheet date.
• B) All balance sheet items are translated using the closing rate in effect at the balance sheet date.
• C) All balance sheet items are translated using the average rate in effect throughout the year.
• D) Only non-current balance sheet items are translated using the closing rate in effect at the balance sheet date.

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Definitions:

Similarity Principle

The psychological theory that people are attracted to others who are similar to themselves in various aspects.

Tend-And-Befriend Responses

A behavior exhibited under stress, especially by females, to seek out social alliances and nurture rather than engage in fight or flight.

Western Cultures

A term used to describe societies and nations characterized by values, traditions, and institutions including democracy, individual rights, and the scientific method, largely rooted in European history.

Eastern Cultures

Societal norms, practices, and traditions that are characteristic of countries and regions in Eastern parts of the world, such as Asia.