When the Local Currency of a Foreign Subsidiary Is the Functional

question 62

Multiple Choice

When the local currency of a foreign subsidiary is the functional currency,the 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.

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Definitions:

Auricle

The outer part of the ear that captures sound waves and directs them into the ear canal.

Rhegmatogenous

Pertains to a type of retinal detachment that occurs due to a tear or break in the retina, allowing fluid to accumulate under the retina.

Exudative

Pertaining to any fluid that filters from the circulatory system into lesions or areas of inflammation.

Traction

The application of a pulling force to a part of the body to realign or immobilize bones and joints.