A foreign subsidiary's function currency is its local currency that has not experienced significant inflation.The weighted average exchange rate for the current year would be the appropriate exchange rate for translating Sales to
Wages expense Customers
A)Yes Yes
B)Yes No
C)No No
D)No Yes

Question

Quizplus · Accepted Answer

The weighted average exchange rate is appropriate for translating both sales and wages expense because they are income statement items, and the average rate reflects the exchange rate over the period in which these transactions occur.

A Foreign Subsidiary's Function Currency Is Its Local Currency That