Average exchange rates are used to translate certain items from foreign financial statements into U$.$S$.$ dollars. Such averages are used in order to:

Question $8$ options:

a$)$ smooth out large translation gains and losses.

b$)$ eliminate temporary fluctuation in exchange rates that may be reversed in the next fiscal period.

c$)$ avoid using different exchange rates for some revenue and expense accounts.

d$)$ approximate the exchange rate in effect when the items were recognized.