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:

Fairly Compensated

Being remunerated or paid in a manner that is considered just, equitable, and appropriate based on one's role, contributions, and the context.

Skill Variety

The degree to which a job involves a range of different activities requiring the use of various skills and talents.

Job Characteristics Model

A theory that proposes five core job dimensions, leading to high job satisfaction, motivation, and performance.

Visible Outcome

A result or effect that is easily seen, noticed, or observed.