Question #124
Reading: Reading 10 Multinational Operations
PDF File: Reading 10 Multinational Operations.pdf
Page: 66
Status: Unattempted
Correct Answer: B
Question
Which of the following general statements is CORRECT with respect to the temporal method? Revenues and operating expenses (excluding COGS) are translated at the:
Answer Choices:
A. historical rate
B. average rate
C. current rate
Explanation
As a general rule for the temporal method, all revenues and operating expenses
(excluding COGS) are translated using the average rate.