Because Subsequent Inflation Does Not Affect the Cost of Assets

question 79

Multiple Choice

Because subsequent inflation does not affect the cost of assets in JIMC's financial accounting records,managers should use the prevailing exchange rate when the assets were acquired to convert the assets into ________.

• A)pesos
• B)francs
• C)dollars
• D)foreign currency
• E)non-cash assets

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Definitions:

Sweat Production

The process by which the sweat glands produce sweat, a fluid consisting of water, salts, and other substances, to cool the body down.

Na+

Sodium ions, essential electrolytes in the body that play critical roles in fluid balance, nerve function, and muscle contractions.

Urine

A liquid by-product of metabolism in humans and many animals, which is excreted by the kidneys through the urinary system.

Aldosterone

Steroid hormone produced by the zona glomerulosa of the adrenal cortex that facilitates potassium exchange for sodium in the distal renal tubule, causing sodium reabsorption and potassium and hydrogen secretion.