Question #17
Reading: Reading 10 Multinational Operations
PDF File: Reading 10 Multinational Operations.pdf
Page: 9
Status: Incorrect
Correct Answer: A
Your Answer: B
Question
Which of the following general statements is most accurate with respect to the current rate method? Revenues:
Answer Choices:
A. and operating expenses are translated at the average rate
B. are translated at the average rate while operating expenses are translated at the current rate
C. and operating expenses are translated at the current rate
Explanation
As a general rule for the current rate method, all revenues and operating expenses are
translated using the average rate.