REFERENCE: Ref.10_05 a Subsidiary of Porter Inc. ,A U.S.company,was Located in a in a Foreign

question 40

Multiple Choice

REFERENCE: Ref.10_05
A subsidiary of Porter Inc. ,a U.S.company,was located in a foreign country.The functional currency of this subsidiary was the stickle (§) .The subsidiary acquired inventory on credit on November 1,2008,for §120,000 that was sold on January 17,2009 for §156,000.The subsidiary paid for the inventory on January 31,2009.Currency exchange rates between the dollar and the stickle were as follows:

-Under the temporal method,how would cost of goods sold be restated?

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

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Definitions:

Child Protective Services

An agency designed to respond to reports of child abuse or neglect, ensuring the safety and wellbeing of children.

Child Abuse

Physical, sexual, emotional mistreatment, or neglect of a child by a parent, caregiver, or another person in a position of trust.

State Charge

A state charge refers to a financial or legal obligation enforced by a government entity, such as taxes, fines, or fees for services.

Sexual Abuse

Any unwanted sexual activity, with perpetrators using force, making threats, or taking advantage of victims not able to give consent.