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Which of the following statements regarding the effects of translation on financial statement items/ratios is most accurate? Leverage is higher under the current rate method
Which of the following statements regarding the effects of translation on financial statement items/ratios is most accurate?
Leverage is higher under the current rate method as compared to under the local currency. | ||
Depreciation in the reporting currency under the current rate method is higher than under the temporal method if the local currency has appreciated. | ||
Fixed assets are relatively overstated under the temporal method compared to the local currency if the local currency has appreciated. |
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