Question: b)Temporal Method: It is also known as the historical method. The Temporal Method converts the currency of a foreign subsidiary into the currency of the

b)Temporal Method: It is also known as the historical method. The Temporal Method converts the currency of a foreign subsidiary into the currency of the parent company. Monetary assets and liabilities are converted using the exchange rate in effect as the balance sheet date and non-monetary assets and liabilities are converted using the exchange rate in effect on the transaction date.

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