CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

At the end of the accounting period the subsidiary reports the following trial balance:

The relevant exchange rates during the year are as follows:

January 1: 1SF=$1.71
Weighted average: 1SF=$1.64
December 31: 1SF=$1.62

Under the temporal method, reported accounts receivable are
A. $15,390
B. $14,760
C. $14,580
Explanation: Accounts receivable are a monetary asset and, as a result, they are translated at the current exchange rate under the temporal method.

User Contributed Comments 1

User Comment
gaurav1207 Accounts rec are monetary assets and hence translated at current rate
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