- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 12. Multinational Operations
- Subject 3. Remeasurement: The Temporal Method
CFA Practice Question
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.
Correct Answer: A
User Contributed Comments 2
| User | Comment |
|---|---|
| danlan2 | Which rate is used for accumulated depreciation? Historic exchange rate? |
| anricus28 | Yes |