The Eliminations and Adjustment Entries Necessary to Consolidate the Parent

question 42

Multiple Choice

The eliminations and adjustment entries necessary to consolidate the parent and subsidiary financial statements are translated as follows:

• A) all balances, profits, and losses at the current exchange rate on the consolidation date
• B) intercompany balances translate at the rates used for other accounts, profits and losses translate at an average rate
• C) Intercompany balances translate at the current rates, profits and losses translate at an average rate
• D) none of the above are correct

Learn about the duties of loyalty, notification, obedience, and performance in agency relationships.

Know the legal remedies and liabilities when either the agent or principal fails to fulfill their obligations.

Comprehend the importance of written agreements in clarifying the agency relationship and duties involved.

Recognize situations that might inadvertently establish agency relationships and understand their potential legal ramifications.