CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Which of the following statements about the current rate method is true?
A. Fixed assets are translated at historical exchange rates when the assets were acquired.
B. Common stocks and dividends are translated at current exchange rates.
C. All assets and liabilities (except common stock) are translated at the exchange rate in effect on the statement date.
Explanation: Under the current rate method, all assets and liabilities (other than capital accounts) are translated at current exchange rates. Common stock is translated at historical rates and retained earnings are computed from profits and dividends.

User Contributed Comments 1

User Comment
danlan2 Good explanation.
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