If an imbalance results from the accounting method used for translation, the imbalance is taken either to ________ or ________.
A) the bank; the post office
B) depreciation; the market for foreign exchange swaps
C) current income; equity reserves
D) current liabilities; equity reserves

Question

Quizplus · Accepted Answer

If there is an imbalance resulting from the accounting method used for translation, the imbalance is taken either to current income or equity reserves. Current liabilities are not typically affected by translation adjustments, and depreciation and the market for foreign exchange swaps are unrelated to this accounting issue. The bank and post office are also not involved in this type of adjustment.

If an Imbalance Results from the Accounting Method Used for Translation