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Basic Question 0 of 16
Which of the following statements about the accounts receivable turnover ratio is true in a period of an appreciating local currency and the use of the current rate method?
B. The current rate method results in a higher accounts receivable turnover ratio than the temporal method.
C. The accounts receivable turnover ratio is the same under either method.
A. The current rate method results in a lower accounts receivable turnover ratio than the temporal method.
B. The current rate method results in a higher accounts receivable turnover ratio than the temporal method.
C. The accounts receivable turnover ratio is the same under either method.
User Contributed Comments 2
User | Comment |
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bananabun2 | i thought they said all assets and liabilities as translated at current rate? How come AR is translated at average rate? |
danlan2 | AR is translated at current rate. |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
analyze how the current rate method and the temporal method affect financial statements and ratios;
CFA® 2024 Level II Curriculum, Volume 2, Module 13.