Which of the Following Is Not True If the Functional

Which of the following is not true if the functional currency of a foreign operation is U.S. dollars?

A) All balance sheet items that were carried at current or future exchange prices are translated at the current exchange rate.
B) All balance sheet items carried at past prices are translated at exchange rates existing at the time the item was acquired.
C) All income statement items are translated at the average exchange rate for the reporting period.
D) Exchange gains and losses arising from translation from the currency of record into the functional currency are recognized on the income statement.