The temporal method properly reports the economic effect of foreign inflation.

Name: The temporal method properly reports the economic effect of foreign inflation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The temporal method translates foreign currency financial statements using the exchange rates at the dates of the transactions. This method properly reports the economic effect of foreign inflation because it reflects the changes in the purchasing power of the foreign currency over time.

The Temporal Method Properly Reports the Economic Effect of Foreign