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  3. Study Set
    Advanced Accounting Concepts and Practice
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    Exam 16: Translating Foreign Currency Statements: The Temporal Method and the Functional Currency Concept
  5. Question
    A Decrease in the Direct Exchange Rate as a Result
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A Decrease in the Direct Exchange Rate as a Result

Question 61

Question 61

True/False

A decrease in the direct exchange rate as a result of foreign inflation results in an unrealized inflationary holding gain to the extent that foreign fixed assets are financed with nonindexed debt.

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