When the Local Currency of the Foreign Subsidiary Is the Functional

question 52

Multiple Choice

When the local currency of the foreign subsidiary is the functional currency,a foreign subsidiary's inventory carried at cost would be converted to U.S.dollars by:

• A) translation using historical exchange rates.
• B) remeasurement using historical exchange rates.
• C) remeasurement using the current exchange rate.
• D) translation using the current exchange rate.