=+Question 7 The general rule for translating liabilities denominated in a foreign currency into the functional currency is to:

(a) translate all liabilities using the current rate existing at balance date.

(b) first classify the liabilities into current and non-current.

(c) first classify the liabilities as monetary or non-monetary.

(d) translate all liabilities using the rate current on entering into the transaction.

Answers:

1 (b)

2 (a)

3 (d)

4 (b)

5

(c) %

6 (d)

7 (©)

Review Questions

(See APPENDIX ONE for Suggested Solutions to Review Questions.)