Assuming that the functional currency of a foreign subsidiary is the local currency, which of the following accounts would be translated at the current rate?
A)Additional Paid-in Capital
B)Retained Earnings
C)Allowance for Doubtful Accounts
D)Cost of Goods Sold

Question

Assuming that the functional currency of a foreign subsidiary is the local currency, which of the following accounts would be translated at the current rate?
A)​Additional Paid-in Capital
B)​Retained Earnings
C)​Allowance for Doubtful Accounts
D)​Cost of Goods Sold

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is a balance sheet account and is translated at the current exchange rate when the functional currency is the local currency.

Assuming That the Functional Currency of a Foreign Subsidiary Is