Which of the Following Statements Is Incorrect

Multiple Choice

Which of the following statements is incorrect?

A) An MNC's subsidiary in a highly inflationary economy should use the parent firm's reporting currency as its functional currency
B) The current rate methods translate all monetary assets and liabilities at the exchange rate on the transaction date
C) The temporal method translates all nonmonetary assets and liabilities at the exchange rate on the transaction date
D) When presenting an MNC's financial information as one economic unit, intra-group transactions should be eliminated.