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 sales for the subsidiary are
A. $42,750
B. $25,000
C. $41,000
Explanation: Like the current rate method, sales are translated at the average exchange rate of $1.64 for a total of $41,000.

User Contributed Comments 0

You need to log in first to add your comment.