Which of the following statements is false?
A)Most income statement items under the current/noncurrent method are translated at the average exchange rate for the accounting period.
B)Under the current/noncurrent method,revenue and expense items that are associated with current assets or liabilities,such as depreciation expense,are translated at the historical rate that applies to the applicable balance sheet item.
C)Under the current/noncurrent method,revenue and expense items that are associated with noncurrent assets or liabilities,such as depreciation expense,are translated at the historical rate that applies to the applicable balance sheet item.
D)Depreciation expense is translated at the historical rate that applies to the applicable depreciable asset items.

Question

Quizplus · Accepted Answer

Revenue and expense items associated with current assets or liabilities are translated at the current exchange rate, not the historical rate as stated in statement B. Statement A is true regarding the translation of most income statement items at the average exchange rate. Statement C is also true in that revenue and expense items associated with noncurrent assets or liabilities are translated at the historical rate. Statement D is true that depreciation expense is translated at the historical rate applicable to the depreciable asset item.

Which of the Following Statements Is False