Dilty Corp

question 75

Multiple Choice

Dilty Corp. owned a subsidiary in France. Dilty concluded that the subsidiary's functional currency was the U.S. dollar.What must Dilty do to ready the subsidiary's financial statements for consolidation?

• A) First translate, then remeasure them.
• B) First remeasure, then translate them.
• C) State all of the subsidiary's accounts in U.S. dollars using the exchange rate in effect at the balance sheet date.
• D) Translate them.
• E) Remeasure them.

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Definitions:

Outstanding Common Stock

Shares of a company's common stock that have been issued and are in the hands of investors, including those held by the public and company insiders but excluding treasury shares.

Annual Amortization

The procedure of methodically deducting the starting cost of an intangible asset throughout its period of utility.

Retained Earnings

The portion of net profits not distributed to shareholders but reinvested in the business or kept as reserve.

Net Income

The profit a company retains after deducting every expense, tax, and cost from its total income.