Answered: Single rate translation method use some…

Single rate translation method use some combination or current and historical rates to translate foreign currency balances.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

ChapterP3: Part 3: Exchange Rate Risk Management

Section: Chapter Questions

Problem 1Q

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Question

Single rate translation method use some
combination or current and historical rates to
translate foreign currency balances.
Select one:
O True
O False

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In the translated financial statements, which method of translation maintains the underlying valuation methods used in preparing the foreign currency financial statements? Choose the correct.a. Current rate method; income statement translated at average exchange rate for the year.b. Current rate method; income statement translated at exchange rate at the balance sheet date.c. Temporal method.d. Monetary/nonmonetary method.
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If the functional currency is determined to not be the foreign entity's local currency, translation is done using a. the current rate method b. the functional method c. the remeasurement method d. the derivative method
28. Single rate translation method use some combination or current and historical rates to translate foreign currency balances.Select one:TrueFalse
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