Assuming that the functional currency of a foreign subsidiary is not the local currency, which of the following accounts would be re-measured at the historical rate?
A)Long-term notes payable
B)Accounts Payable
C)Land
D)Sales Revenue

Question

Assuming that the functional currency of a foreign subsidiary is not the local currency, which of the following accounts would be re-measured at the historical rate?
A)​Long-term notes payable
B)​Accounts Payable
C)​Land
D)​Sales Revenue

Quizplus · Accepted Answer

Land is a non-monetary asset and is re-measured at the historical rate when the functional currency is not the local currency.

Assuming That the Functional Currency of a Foreign Subsidiary Is