Which of the following is a translation method where a "plug" equity account,called cumulative translation adjustment,is used?
A)Current/noncurrent method
B)Current rate method
C)Current/future method
D)Short/long term method

Question

Quizplus · Accepted Answer

The current rate method involves translating foreign currency financial statements using the current exchange rate. Any resulting translation gains or losses are recorded in a plug equity account called cumulative translation adjustment. This method is commonly used in accounting for foreign subsidiaries.

Which of the Following Is a Translation Method Where a "Plug