Under the Current Rate Method, which of the following statements is correct?
A) Transaction exposure is greatest.
B) The relationship of balance sheet items is best preserved.
C) Income statement items are translated using a mix of rates.
D) Income statement items are translated using average rates.

Question

Quizplus · Accepted Answer

The Current Rate Method translates all balance sheet items at the current exchange rate, preserving the relationship between them.

Under the Current Rate Method, Which of the Following Statements