The General Rule for Translating Liabilities Denominated in a Foreign

question 13

Multiple Choice

The general rule for translating liabilities denominated in a foreign currency into the functional currency is to:

• A) translate all liabilities using the current rate existing at end of reporting period;
• B) first classify the liabilities into current and non-current;
• C) first classify the liabilities as monetary or non-monetary;
• D) translate all liabilities using the rate current on entering into the transaction.

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