4. The year-end balance of accounts receivable on the books of a foreign subsidiary should be translated by the parent company for consolidation purposes at the:

a Historical rate b Current rate c Negotiated rate d Average rate 5. When remeasuring foreign currency financial statements into the functional currency, which of the following items would be remeasured using historical exchange rates?

a Inventories carried at cost b Marketable equity securities reported at market values c Bonds payable d Accrued liabilities Foreign Currency Financial Statements 493