Average Exchange Rates Are Used to Translate Certain Items from Foreign

Average exchange rates are used to translate certain items from foreign financial statements into U.S. dollars. Such averages are used in order to:

A) smooth out large translation gains and losses.
B) eliminate temporary fluctuation in exchange rates that may be reversed in the next fiscal period.
C) avoid using different exchange rates for some revenue and expense accounts.
D) approximate the exchange rate in effect when the items were recognized.