Which Exchange Rates Are Used for Foreign Subsidiaries with Different

question 3

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

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

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