In most cases, which of the following is not a component of translated retained earnings?
A)Translated retained earnings at the end of the prior period
B)Income from the period translated at the historical rate
C)The value of dividends translated at the exchange rate on the date of declaration
D)All are components of translated retained earnings

Question

In most cases, which of the following is not a component of translated retained earnings?
A)​Translated retained earnings at the end of the prior period
B)​Income from the period translated at the historical rate
C)​The value of dividends translated at the exchange rate on the date of declaration
D)​All are components of translated retained earnings

Quizplus · Accepted Answer

Income from the period is typically translated at the average rate for the period, not the historical rate. The historical rate is used for specific transactions that occurred at a particular point in time, such as the purchase of an asset, not for income which accumulates over a period.

In Most Cases, Which of the Following Is Not a Component