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.

Question

Quizplus · Accepted Answer

When the local currency is the functional currency, inventory is translated to U.S. dollars using the current exchange rate as part of the translation process.

When the Local Currency of a Foreign Subsidiary Is the Functional