CAF-6 · Chapter 4 · Question 11 of 15
When translating into a presentation currency, income and expenses are generally translated at:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The exchange rates at the dates of the transactions (or an average rate).
Explanation
Income and expenses are translated at the exchange rates at the dates of the transactions. For practical reasons, an average rate for the period is often used.
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