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

question 24

Multiple Choice

The 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