Under the Current Rate Method, Inventory at Net Realizable Value

question 96

Multiple Choice

Under the current rate method, inventory at net realizable value would be translated for the balance sheet at what rate?

• A) Beginning of the year rate.
• B) Average rate.
• C) Current rate.
• D) Historical rate.
• E) Composite amount.

---

Definitions:

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Days' Payable Outstanding

Days' Payable Outstanding (DPO) is a financial ratio that indicates the average time (in days) that a company takes to pay its bills and invoices to its trade creditors.

Accounts Payable

Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Days' Payable Outstanding

A financial metric that measures how long it takes a company to pay its invoices from suppliers, reflecting on cash management practices.