When translating the financial statements of an entity from its functional currency to its selected presentation currency, which of the following translation measurement is incorrect? Assets and liabilities are translated at the closing rate at the date of Statement of Financial Position. Income and expenses are translated at (1) exchange rates at the date of the transaction or (2) average rate for the period for practicality. Share capital accounts are translated at the date of the transaction resulting to that equity items. Retained earnings are translated using the average rate during the period.

When translating the financial statements of an entity from its functional currency to its selected presentation currency, which of the following translation measurement is incorrect? Assets and liabilities are translated at the closing rate at the date of Statement of Financial Position. Income and expenses are translated at (1) exchange rates at the date of the transaction or (2) average rate for the period for practicality. Share capital accounts are translated at the date of the transaction resulting to that equity items. Retained earnings are translated using the average rate during the period.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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