A foreign subsidiary's accounts receivable balance should be translated for the consolidated financial statements at
A)the appropriate historical rate.
B)the prior year's forecast rate.
C)the future rate for the next year.
D)the spot rate at year-end.

Question

Quizplus · Accepted Answer

The accounts receivable balance of a foreign subsidiary should be translated using the spot rate at year-end for the consolidated financial statements. This ensures that the balance is reported at its current fair value and reflects any fluctuations in exchange rates that may have occurred during the year. The other choices do not accurately reflect the current value of the accounts receivable balance.

A Foreign Subsidiary's Accounts Receivable Balance Should Be Translated for the Consolidated