Under the Current Rate Method:
A)Only current balance sheet items excluding shareholders equity are translated using the closing rate in effect at the balance sheet date.
B)All balance sheet items are translated using the closing rate in effect at the balance sheet date.
C)All balance sheet items are translated using the average rate in effect throughout the year.
D)Only non-current balance sheet items are translated using the closing rate in effect at the balance sheet date.

Question

Quizplus · Accepted Answer

Under the Current Rate Method, all balance sheet items are translated using the closing rate in effect at the balance sheet date. This includes both current and non-current assets and liabilities, as well as shareholders' equity.