Asked by

Caleb Guise
on Oct 14, 2024

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Under the temporal method,all revenue and expense items are translated at:

A) historical rate.
B) average rate.
C) either historical or average rate.
D) none of the above.

Temporal Method

An accounting method used to translate foreign currency balances into the functional currency of a business, using exchange rates from the time the transactions occurred.

Historical Rate

The exchange rate between two currencies at the time a transaction occurred, used for translating transactions recorded in foreign currencies to the functional currency.

  • Differentiate the current rate method from the temporal method in the context of translating foreign financial statements.
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Carman RiekeOct 16, 2024
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