American Bankers Association Exam CTFA Topic 3 Question 68 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 68
Topic #: 3

Financial statements of a self-sustaining foreign operation are translated using the current rate method whereby assets and liabilities are translated in the reporting currency using the exchange rate.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: A

by Chi at Jun 23, 2024, 11:34 AM

Limited Time Offer

25%

Off

Get Premium CTFA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Terrilyn

5 months ago

Because in the current rate method, not only assets and liabilities are translated, but also income and expenses. So the answer is B) False.

upvoted 0 times

...

Jaclyn

5 months ago

Why do you think it's false?

upvoted 0 times

...

Terrilyn

5 months ago

I disagree, I believe the answer is B) False.

upvoted 0 times

...

Jaclyn

5 months ago

I think the answer is A) True.

upvoted 0 times

...

German

5 months ago

True, true, true! I've got this one in the bag. Although, come to think of it, when did finance become such a linguistic minefield?

upvoted 0 times

...

Titus

6 months ago

Current rate method, huh? Sounds like something out of a financial wizardry manual. I'll go with true, but I'm half-expecting a trick question.

upvoted 0 times

Dyan

5 months ago

Yeah, that's right. It helps in presenting the financial position accurately in the reporting currency.

upvoted 0 times

...

Dorethea

5 months ago

I think it's true too. The current rate method is used for translating financial statements of foreign operations.

upvoted 0 times

...

Laurene

6 months ago

Ah, the old currency translation dilemma. I think this is true, but I'd better review the textbook just to be sure.

upvoted 0 times

...

Samira

6 months ago

This is a tricky one! I remember learning about the current rate method, but I'm not sure if it applies to all foreign operations. Better double-check my notes.

upvoted 0 times

Ronna

5 months ago

B) False

upvoted 0 times

...

Alex

5 months ago

I think it's true because the current rate method is commonly used for translating financial statements of foreign operations.

upvoted 0 times

...

Ernest

5 months ago

A) True

upvoted 0 times

...