American Bankers Association Exam CTFA Topic 4 Question 74 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 74
Topic #: 4

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 Val at Sep 07, 2024, 08:31 AM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Farrah

3 months ago

Gotta be the Temporal method. Unless this exam is designed to give me a migraine, in which case I'll go with D) Cash inflow/outflow.

upvoted 0 times

Audra

1 months ago

The Temporal method is the correct choice for translating items at the balance sheet date.

upvoted 0 times

...

Candida

1 months ago

I agree, the Temporal method is used for translating monetary and non-monetary items at market value.

upvoted 0 times

...

Jesusa

2 months ago

I think you're right, it's definitely the Temporal method.

upvoted 0 times

...

Trevor

3 months ago

I remember studying this, and yes, it's C) Temporal method because it considers the timing of cash flows.

upvoted 0 times

...

Lashandra

3 months ago

C) Temporal method, no doubt. Translating at the balance sheet date is the way to go. Anything else would be cuckoo for Cocoa Puffs!

upvoted 0 times

...

Karl

3 months ago

I'm not sure, but I think it's not D) Cash inflow/outflow method.

upvoted 0 times

...

Samuel

3 months ago

Hmm, the Temporal method sounds right. I'm just hoping this isn't a trick question that involves a sombrero or something.

upvoted 0 times

Timothy

1 months ago

Rosalyn: Nope, those methods are used for different purposes.

upvoted 0 times

...

Cristal

1 months ago

User 3: So, it's not the Dependency method or Equity method then.

upvoted 0 times

...

Rosalyn

1 months ago

User 2: Yeah, that's correct. It's based on the exchange rate on the balance sheet date.

upvoted 0 times

...

Eura

2 months ago

User 1: I think it's C) Temporal method.

upvoted 0 times

...

Samira

3 months ago

I agree with Audra, temporal method makes sense for translating monetary and non-monetary items.

upvoted 0 times

...

Alex

3 months ago

I think the correct answer is C) Temporal method. That's the standard approach for translating market-valued items.

upvoted 0 times

Felicidad

3 months ago

Yes, that's right. It's important to use the standard approach for accurate financial reporting.

upvoted 0 times

...

Felicidad

3 months ago

I agree, C) Temporal method is the correct answer for translating market-valued items.

upvoted 0 times

...

Audra

3 months ago

I think the answer is C) Temporal method.

upvoted 0 times

...