Question Mode

Multiple Choice Question

If all assets and liabilities are translated at a higher exchange rate and equity items are translated at a lower exchange rate, what kind of translation adjustment must be recorded to make the balance sheet "balanced"?

Multiple choice question.

A positive $($debit$)$ translation adjustment

a positive $($credit$)$ translation adjustment

A negative $($debit$)$ translation adjustment

A negative $($credit$)$ translation adjustment