Question #88
Reading: Reading 10 Multinational Operations
PDF File: Reading 10 Multinational Operations.pdf
Page: 49
Status: Unattempted
Question
Which of the following statements is least accurate regarding the use of the temporal method for foreign exchange accounting?
Answer Choices:
A. Under the temporal method, the foreign exchange gain or loss is placed on the balance sheet in the equity section
B. All monetary assets are translated at the current rate of exchange
Explanation
Under the temporal method, the foreign exchange gain or loss is placed on the income
statement.