Which of the following statements pertaining to the functional currency translation (FCT) method is INCORRECT?

Multiple Choice

Foreign currency monetary items must be translated at the closing rate the end of each reporting period.

It is appropriate to use a weighted average of the historical rates throughout a period to translate foreign currency nonmonetary items as long as the exchange rates do not fluctuate significantly.

Any exchange adjustments resulting from the translation of monetary items at rates different from those used on initial recognition are recognized in other comprehensive income.

The FCT method produces translation results consistent with the valuation practices for domestic operations.