Which of the following rates would be used to translate the company's Retained Earnings at the start of the year?
A) US$1 = CDN$0.815
B) US$1 = CDN$0.8175
C) US$1 = CDN$0.825
D)US$1 = CDN$0.83

Question

Quizplus · Accepted Answer

The rate used to translate the company's Retained Earnings at the start of the year is the rate at which the Retained Earnings were originally translated into US dollars. This rate is typically the spot rate on the date the Retained Earnings were translated. In this case, the spot rate on the date the Retained Earnings were translated was US$1 = CDN$0.815.

Which of the Following Rates Would Be Used to Translate