Which statement is a component of default currency translation for revenue accounts?

• A. The periodic activity of a revenue account is translated at the Average Rate.
• B. The balance of revenue accounts is translated using the Closing Rate.
• C. Revenue accounts are translated using the Historical Rate.
• D. Revenue accounts are not translated.

Answer: (A)

In currency translation for FCCS, income statement items like revenue are translated using the Average Rate for the period. This reflects the idea that revenue is earned over the entire period and should be translated with a rate that represents the typical exchange level during that time, smoothing out day-to-day rate swings.

The Closing Rate is used for period-end balance sheet items, not revenue. The Historical Rate is typically used for certain equity or opening-balance scenarios, not regular revenue translation. Revenue accounts are translated into the reporting currency, not left untranslated.

So, the statement that the periodic activity of a revenue account is translated at the Average Rate is the correct description of default currency translation for revenue accounts.