In selecting the appropriate foreign currency exchange rates to apply in translating foreign currency transactions,the accountant exercises an important element of judgment about whether the rates are overvaluing or undervaluing the reporting currency.

Question

Quizplus · Accepted Answer

The appropriate foreign currency exchange rates for translating foreign currency transactions are typically determined by accounting standards and regulations, not by the accountant's judgment about the valuation of the reporting currency.

In Selecting the Appropriate Foreign Currency Exchange Rates to Apply