In Preparing Consolidated Financial Statements of a U

question 8

Multiple Choice

In preparing consolidated financial statements of a U.S. parent company and a foreign subsidiary, the foreign subsidiary's functional currency is the currency:

• A) of the country the parent is located.
• B) of the country the subsidiary is located.
• C) in which the subsidiary primarily generates and spends cash.
• D) in which the subsidiary maintains its accounting records.

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Definitions:

Romanian Orphans

Refers to children who were institutionalized in overcrowded, underfunded Romanian orphanages during Nicolae Ceaușescu's regime, studied for the impacts of deprivation and social neglect.

Zones of Proximal Development

The difference between what learners can do without help and what they can achieve with guidance and encouragement from a skilled partner.

Lev Vygotsky

Lev Vygotsky was a Russian psychologist who contributed significantly to developmental psychology, especially known for his theories on cultural-historical psychology and the zone of proximal development.

Deferred Imitation

A cognitive behavior observed in children, where they are able to replicate an action after a delay, demonstrating memory and understanding of the behavior.