When Translating into the Functional Currency Foreign Currency Denominated Non-Monetary

question 1

Multiple Choice

When translating into the functional currency foreign currency denominated non-monetary items measured using historical cost must be translated using the:

• A) rate current at end of reporting period;
• B) average rate for the reporting period;
• C) exchange rate at the date of the transaction;
• D) rate prevailing at the end of the last financial year.

---

Definitions:

Minimum Output

refers to the lowest level of production that a company can sustain over the long term.

Amount of Profit

The financial gain made in a transaction or operation, calculated as total revenues minus total costs.

Vertical Axis

The y-axis in a graph or chart, which typically represents the dependent variable in a data set.

Total Cost Curve

A graph that depicts how the total costs of production vary with the level of output.