Under the foreign currency unit of measure approach, monetary accounts are always translated at the current exchange rate.

Question

Quizplus · Accepted Answer

Under the foreign currency unit of measure approach, monetary accounts, which include cash, receivables, and payables that are fixed in terms of the amount of foreign currency received or paid, are indeed always translated at the current exchange rate to reflect the most accurate value in the reporting currency.

Under the Foreign Currency Unit of Measure Approach, Monetary Accounts