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

question 35

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 current rate method,inventory at market would be restated at what rate?

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

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Definitions:

Terrestrial Radiation

The naturally occurring radiation from radioactive materials in the soil, rocks, and atmosphere.

Earth's Crust

Earth's crust is the outermost layer of the Earth, consisting of rocks and minerals, and constituting less than 1% of Earth's volume.

Radioactive Materials

Substances that emit radiation due to the spontaneous breakdown of atomic nuclei, used in energy production, medicine, and industry.

Cosmic Radiation

High-energy particles, primarily originating from outside the solar system, that travel through space and can affect Earth and spacecraft.