Question #91
Reading: Reading 10 Multinational Operations
PDF File: Reading 10 Multinational Operations.pdf
Page: 50
Status: Unattempted
Question
Which of the following general statements is most accurate with respect to the temporal method? Nonmonetary assets are translated at:
Answer Choices:
A. the average rate during the year
B. the current rate
Explanation
As a general rule in using the temporal method, nonmonetary assets are translated using
the historical rate at the time of the transaction.