Under the temporal method, which of the following items would be translated using the year-end spot rate?
A)Inventory
B)Land
C)Long-term debentures
D)Building

Question

Quizplus · Accepted Answer

The temporal method requires translation of all assets and liabilities at the current exchange rate except for long-term debt which is translated using the spot rate at the date of issuance. Therefore, long-term debentures would be translated using the year-end spot rate. Inventory, land, and building would be translated using the current exchange rate.

Under the Temporal Method, Which of the Following Items Would