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

---

Definitions:

Moral Development

A process through which individuals evolve their understanding of what is right and wrong, often described through stages by psychologists.

Lawrence Kohlberg

An American psychologist best known for his theory of stages of moral development.

Utilitarian Theories

A set of ethical theories that posit that the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Cost-benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieve benefits while preserving savings.