When Consolidating a Foreign Subsidiary, Which of the Following Statements

question 39

Multiple Choice

When consolidating a foreign subsidiary, which of the following statements is true?

• A) Parent reports a cumulative translation adjustment from adjusting its investment account under the equity method.
• B) Parent reports a gain or loss in net income from adjusting its investment account under the equity method.
• C) Subsidiary's cumulative translation adjustment is carried forward to the consolidated balance sheet.
• D) Subsidiary's income/loss is carried forward to the consolidated balance sheet.
• E) All foreign currency gains/losses are eliminated in the consolidated income statement and balance sheet.

---

Definitions:

Protesters' Demands

encapsulates the specific changes or actions that a group of people publicly demonstrating are seeking to achieve from an authority or institution.

Protest Movements

Collective efforts of individuals or groups to express opposition to, or demand changes in, political, social, economic, or environmental issues.

National Industrial Recovery Act

A 1933 U.S. law aimed at boosting economic recovery during the Great Depression, which sought to encourage industrial growth and improve labor conditions.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s.