American Bankers Association Exam CTFA Topic 2 Question 83 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 83
Topic #: 2

Monetary items and non-monetary items carried at market value are translated into the reporting currency at the rate of exchange in effect on the balance sheet date under:

ADependency method

BEquity method

CTemporal method

DCash inflow/outflow method

Show Suggested Answer

Suggested Answer: C

by Twana at Jan 13, 2025, 12:10 PM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Lai

2 days ago

I agree with Kaycee, because temporal method considers the timing of cash flows.

upvoted 0 times

...

Shawnna

6 days ago

Ooh, the temporal method, that's a tricky one. I better double-check the textbook on that one.

upvoted 0 times

...

Kaycee

10 days ago

I think the answer is C) Temporal method.

upvoted 0 times

...

Marti

12 days ago

I think the temporal method is the correct answer here. It just makes sense to use the exchange rate on the balance sheet date, right?

upvoted 0 times

...