CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Cumulative translation adjustment is:

A. the gain or loss accumulated over the entire life of the firm.
B. the adjusting entry necessary to recognize the impact of foreign exchange on net income.
C. the gain or loss from foreign currency translation accumulated over the fiscal period.
D. the change in the functional currency over the period.
E. the change in the net asset position of the firm for the period.
Correct Answer: A

The cumulative translation adjustment (CTA) is the gain or loss cumulated over the entire life of the company.

User Contributed Comments 1

User Comment
quanttrader hence cumulative
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