The Method Used to Translate Financial Statements Prepared in the Functional

question 29

Multiple Choice

The method used to translate financial statements prepared in the functional currency into the presentation currency is known as the:

• A) temporal method.
• B) functional method.
• C) current rate method.
• D) presentation method.

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Definitions:

Units

A measurement for the quantity of a product, service, or resource, used interchangeably depending on the context.

Direct Labour

Direct labour relates to the employees or workers directly involved in the production of goods or services, whose wages are considered a direct cost of production.

Overhead Budget

A financial plan that estimates the expected overhead costs for a business over a certain period.

Indirect Materials

Materials used in the production process that cannot be directly linked to specific products or are not significant enough to warrant tracing to individual products, such as lubricants for machinery.