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

question 45

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,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:

Eggs

The oval or round reproductive bodies produced by female animals, often consumed as food by humans.

Small Intestine

A part of the gastrointestinal tract between the stomach and the large intestine that absorbs nutrients and minerals from food.

Proteins

Large, complex molecules that play many critical roles in the body, including as enzymes, hormones, and antibodies.

Cecum

A pouch connected to the junction of the small and large intestines, playing a role in the digestive system.