Which of the following statements about non-monetary assets is true?
A)Under the temporal method, non-monetary assets are translated at the closing rate.
B)Under the temporal method, non-monetary assets are translated at the average rate.
C)Under the current-rate method, non-monetary assets are translated at the historical rate.
D)Under the current-rate method, non-monetary assets are translated at the closing rate.

Question

Quizplus · Accepted Answer

Under the current-rate method, non-monetary assets are translated at the closing rate, which is the exchange rate at the balance sheet date. This method applies the current exchange rate to all assets and liabilities, including non-monetary items.

Which of the Following Statements About Non-Monetary Assets Is True