American Bankers Association Exam CTFA Topic 3 Question 65 Discussion

Actual exam question for American Bankers Association's Certified Trust and Financial Advisor exam

Question #: 65
Topic #: 3

[All Certified Trust and Financial Advisor Questions]

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 Yoko at May 09, 2024, 06:53 PM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Cecilia

3 months ago

Okay, you guys convinced me. Temporal method it is, then!

upvoted 0 times

...

Jina

3 months ago

I see why you say Temporal method. That makes sense for exchange rate translation on the balance sheet date.

upvoted 0 times

...

Na

3 months ago

I think User2 is right. The Temporal method fits the definition of translating monetary and non-monetary items at market value.

upvoted 0 times

...

Cecilia

3 months ago

Really? I was leaning towards the Dependency method.

upvoted 0 times

...

Theodora

3 months ago

Yeah, it’s a bit confusing. But I think the correct answer is option C, the Temporal method.

upvoted 0 times

...

Jina

4 months ago

The question seems tricky. What do you guys think?

upvoted 0 times

...