Asked by
Jared Palmer
on Oct 16, 2024
Verified
Which of the following statements about non-monetary assets is true?
A) Under the temporal method, non-monetary assets are translated at the closing rate.
B) Under the temporal method, non-monetary assets are translated at the average rate.
C) Under the current-rate method, non-monetary assets are translated at the historical rate.
D) Under the current-rate method, non-monetary assets are translated at the closing rate.
Non-Monetary Assets
Assets that are not held in the form of cash or cash equivalents, such as property, equipment, and intangible assets.
Temporal Method
An accounting technique used for currency translation that uses exchange rates based on the time assets and liabilities are acquired or incurred.
- Establish the suitable exchange rates to be used for different accounts employing distinct translation techniques.
Verified Answer
JT
Learning Objectives
- Establish the suitable exchange rates to be used for different accounts employing distinct translation techniques.
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