The method used to translate financial statements prepared in the functional currency into the presentation currency is known as the:
A) temporal method.
B) functional method.
C) current rate method.
D) presentation method.

Question

Quizplus · Accepted Answer

The method used to translate financial statements prepared in the functional currency into the presentation currency is known as the current rate method. The current rate method uses current exchange rates to translate all balance sheet accounts at the current rate, and all income statement accounts at the average rate for the period.

The Method Used to Translate Financial Statements Prepared in the Functional