Q16. Which of the following statements is FALSE regarding the use of the temporal method for foreign exchange accounting?
A) All nonmonetary assets and liabilities are translated at the historical rate of exchange. B) Under the temporal method, the foreign exchange gain or loss is placed on the balance sheet in the equity section. C) All monetary assets are translated at the current rate of exchange.
Q17. Which of the following statements is NOT a characteristic of the all-current method of accounting for foreign currency translation?
A) All asset accounts are translated at the current rate of exchange as of the balance sheet date. B) The common stock account is translated at the rate of exchange that applied when the equity was issued. C) Nonmonetary liabilities are translated at the historical rate of exchange.
Q18. Which of the following general statements is most accurate with respect to the all-current method? Revenues: A) and operating expenses are translated at the current rate. B) and operating expenses are translated at the average rate. C) are translated at the average rate while operating expenses are translated at the current rate.
Q19. Which of the following general statements is CORRECT with respect to the temporal method? Revenuesand operating expenses (excluding COGS) are translated at the and operating expenses (excluding COGS) are translated at the: A) historical rate. B) average rate. C) current rate.
Q20. Under the all-current method, common stock is translated by using the: A) exchange rate as of the balance sheet date. B) rate that existed when the equity was issued. C) present value of weighted average rate.
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