Which Exchange Rates Are Used for Foreign Subsidiaries with Different

question 12

Multiple Choice

Which exchange rates are used for foreign subsidiaries with different functional currencies? Using the following abbreviations identify which of the below are correct methods for converting accounts receivable.

Year-end rates: YE
Average rates: AR
Historical rates: HR
$$\begin{array} { c c c } & \text { Temporal } & \text { Current rate } \\\text { A) } & \mathrm { AR } & \mathrm { AR } \\\text { B) } & \mathrm { YE } & \mathrm { YE } \\\text { C) } & \mathrm { YE } & \mathrm { AR } \\\text { D) } & \mathrm { HR } & \mathrm { YE }\end{array}$$

• A)Option A
• B)Option B
• C)Option C
• D)Option D