Is there a quick way to remember whether the ratio will be higher under current rate method vs. temporal
No. Because it depends whether the FC is appreciating or depreciating.
maybe if you’re a robot
Unfortunately, no. This is where you have to buckle down and learn the material. Don’t memorize; understand the reason for the changes. It’s probaly stuff like this that will separate those who pass and those who get to retake the exam.
for review only: LC+(local currency appreciated) -------------------Temporal [vs All-Currenct] ----------------------------------------------------- Current Ratio: lower Quick Ratio: same A/R turnover: same … ROE: uncertain ROA: uncertain … Int coverage: higher LTD/TC: higher ----------------------------------------------------- So, when LC+, temporal method looks NOT bad except CR and LTD/TC. Kind of surprise for me.