inventory

问题如下：

Scenery manufacturer is a CHINA-based company, Scenery has a subsidiary, XZZ, operates in US, XZZ was acquired in 2018 and has never paid a dividend. It records inventory using the FIFO method. RMB is expecting depreciation in the future.

Flexi, CFA, he gathers XZZ’s financial statements and the RMB/US dollar exchange rates in the following table:

If XZZ using the current rate method to translate financial statement into RMB, in 2018,Scenery’s consolidated financial statement will most likely include XZZ’s:

选项：

A.

RMB4,407 Inventory

B.

RMB1621.9 long-term debt

C.

RMB47,190 million in revenues

解释：

C is correct.

考点：current rate method

解析：

A：在current rate method下，inventory用current rate转换，即650*7=4550

B: 无论在哪种方法下，long-term debt都使用current rate转换，即245*7=1715

C: 在current rate method, I/S上的项目全部用average rate 来转换 ， 所以revenue = 6,790*6.95=47,190。