Accounts representing an allowance for uncollectible accounts are converted into U.S.dollars at
A)historical rates when the U.S.dollar is the functional currency.
B)current rates only when the U.S.dollar is the functional currency.
C)historical rates regardless of the functional currency.
D)current rates regardless of the functional currency.

Question

Quizplus · Accepted Answer

Allowances for uncollectible accounts, being balance sheet items related to receivables, are typically converted at current exchange rates for financial reporting purposes, regardless of the functional currency. This approach reflects the current value of the expected uncollectible amount in terms of the reporting currency.

Accounts Representing an Allowance for Uncollectible Accounts Are Converted into U.S.dollars