Question #49
Reading: Reading 10 Multinational Operations
PDF File: Reading 10 Multinational Operations.pdf
Page: 27
Status: Incorrect
Correct Answer: B
Your Answer: A
Question
Where does the currency translation gain or loss appear in the financial statements under the temporal method and the current rate method? Temporal method Current rate method
Answer Choices:
A. Balance sheet Balance sheet
B. Income statement Balance sheet
C. Balance sheet Income statement
Explanation
Currency translation gain or loss appears on the income statement under the temporal
method and the balance sheet under the current rate method.