Under the Temporal Method:
A)The relationship of balance sheet items is best preserved.
B)A single historic rate is used to translate all income statement items.
C)A net asset exposure is most likely.
D)Historic rates are used to translate most non-monetary items.

Question

Quizplus · Accepted Answer

Under the Temporal Method, historical rates are used to translate non-monetary items such as inventory and fixed assets, while monetary items are translated at current rates.