The Eliminations and Adjustment Entries Necessary to Consolidate the Parent

question 25

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 may be translated 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

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Definitions:

Parapsychology

The study of paranormal phenomena, including ESP and psychokinesis (also called telekinesis).

Precognition

The alleged psychic ability to see or know about events before they happen.

Kinesthesia

The sense of movement and body position, often referred to as muscle memory or the ability to feel movements of the limbs and body.

Precognition

The purported psychic ability to see or know about events before they happen, which remains a controversial and largely scientifically unproven concept.