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Basic Question 5 of 6
In the remeasurement of the trial balance of a foreign branch to its U.S. dollars functional currency, the average exchange rate for the accounting period is applied to the balance of which ledger account?
B. Notes Payable.
C. Accumulated Depreciation.
A. Sales.
B. Notes Payable.
C. Accumulated Depreciation.
User Contributed Comments 2
| User | Comment |
|---|---|
| danlan2 | Which rate is used for accumulated depreciation? Historic exchange rate? |
| anricus28 | Yes |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
compare the current rate method and the temporal method, evaluate how each affects the parent company's balance sheet and income statement, and determine which method is appropriate in various scenarios;
calculate the translation effects and evaluate the translation of a subsidiary's balance sheet and income statement into the parent company's presentation currency;
CFA® 2025 Level II Curriculum, Volume 2, Module 12.