Under the current rate method of translating foreign currency financial statements, what exchange rate should be used for cost of goods sold?
A. spot rate at the end of the year
B. average rate during the year
C. spot rate mid-year
D. There is no single rate because beginning and ending inventory must be converted at different exchange rates than purchases.
Answer:B
Under the current rate method of translating foreign currency financial statements, what exchange rate should be used for cost of goods sold?
A. spot rate at the end of the year B. average rate during the year C. spot rate mid-year D. There is no single rate because beginning and ending inventory must be converted at different exchange rates than purchases.