Because subsequent inflation does not affect the cost of assets in JIMC's financial accounting records,managers should use the prevailing exchange rate when the assets were acquired to convert the assets into ________.
A)pesos
B)francs
C)dollars
D)foreign currency
E)non-cash assets

Question

Quizplus · Accepted Answer

Since the question mentions using the prevailing exchange rate at the time of acquisition, it is most appropriate to convert the assets into dollars.

Because Subsequent Inflation Does Not Affect the Cost of Assets