When remeasuring foreign currency financial statements into the functional currency, which of the following items would be remeasured using historical exchange rate? a. Inventories carried at cost. b. Marketable equity securities reported at market values. c. Bonds payable. d. Accrued liabilities.

The correct answer to the following question is option A) inventories carried at cost.

Explanation:

Usually items in the balance sheet accounts are recorded at the current exchange rates, and if in the situation where a foreign entity is not recording its accounts in the foreign functional currency then while remeasuring the accounts would be recorded at historical cost and these accounts would be those which are carried at cost, like they're non monetary items. So here inventories carried at cost would be the correct option.