_____ Under the temporal method of translation, which translation procedures are followed?
A) All balance sheet accounts are translated at the current exchange rate.
B) All income statement accounts are translated at the current exchange rate.
C) A combination of current and historical exchange rates are used in both financial statements.
D) Both a and b.
E) None of the above.

Question

Quizplus · Accepted Answer

Under the temporal method, a combination of current and historical exchange rates are used to translate financial statements. This means that some balance sheet and income statement items are translated at current exchange rates, while others are translated at historical rates, depending on the nature of the item.

_____ Under the Temporal Method of Translation, Which Translation Procedures