Foreign currency held by a Canadian corporation is disclosed on the financial statements using the exchange rate that existed on the date of the:

Question

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Foreign currency held by a Canadian corporation is disclosed on the financial statements using the exchange rate that existed on the date of the financial statements. This is because the financial statements are intended to reflect the financial position of the company at a specific point in time, which is the date of the financial statements. Using the exchange rate on the date of purchase, change in exchange rate, or intended use of the currency would not accurately reflect the financial position of the company on the date of the financial statements.

Foreign Currency Held by a Canadian Corporation Is Disclosed on the Financial