Upon translation, assets and liabilities are translated at the _________ rate at the presentation date and income statement items are translated using the _______ rate for the period.
A)average; closing
B)closing; average
C) forward; closing
D)spot; average.

Question

Quizplus · Accepted Answer

According to the current GAAP (Generally Accepted Accounting Principles), assets and liabilities are translated at the closing rate at the presentation date, which reflects the exchange rate on the balance sheet date. On the other hand, income statement items are translated using the average rate for the period, which reflects the average exchange rate during the relevant period. Therefore, the correct option is B, where assets and liabilities are translated at the closing rate, and income statement items are translated using the average rate.

Upon Translation, Assets and Liabilities Are Translated at the _________