Which of the following statements is correct with respect to the translation of cost of sales in an integrated foreign subsidiary?
A)Opening inventory is translated using an average rate.
B)Opening inventory is translated using closing rates.
C)Ending inventory is translated using an average rate.
D)Ending inventory is translated using the rate in effect when the inventory was acquired.

Question

Quizplus · Accepted Answer

Ending inventory is translated using the rate in effect when the inventory was acquired, as it reflects the historical cost principle in accounting.

Which of the Following Statements Is Correct with Respect to the Translation