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:

Piaget's Stage

Refers to one of the developmental phases in Piaget's theory of cognitive development, highlighting key milestones in a child's learning and understanding.

Preoperational

The second stage in Piaget's theory of cognitive development, characterized by symbolic thought and egocentrism, typically occurring from ages 2 to 7.

Male Systemizing Tendency

A theory suggesting that males are, on average, more inclined towards understanding and building systems, as opposed to empathizing.

Autism

A developmental disorder characterized by difficulties with social interaction and communication, and by restricted or repetitive patterns of thought and behavior.