Major Difference Between the Temporal Method and the Monetary/nonmonetary Method

question 12

Multiple Choice

major difference between the temporal method and the monetary/nonmonetary method is that

• A) under the monetary/nonmonetary method, long?term debt is translated at the historical rate, whereas under the temporal method, long?term debt is translated at the current rate
• B) under the monetary/nonmonetary method, inventory is always translated at the historical rate, whereas under the temporal method, inventory may be translated at the current rate if the inventory is shown on the balance sheet at market values
• C) under the monetary/nonmonetary method, fixed assets are translated at the historical rate, whereas under the temporal method, fixed assets may be translated at the current rate
• D) under the monetary/nonmonetary method, accounts receivable are always translated at the historical rate, whereas under the temporal method, receivables may be translated at the current rate

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Definitions:

Compliance

The action or state of being in accordance with established guidelines, regulations, or legislation.

Jurisdiction

The official power to make legal decisions and judgments, often within a defined geographical area or over certain types of legal cases.

Concurrent Jurisdiction

Jurisdiction that exists when two different courts have the power to hear a case. For example, some cases can be heard in either a federal or a state court.

Federal Court

A court established by the federal government of a country, having jurisdiction over matters that fall within federal law.