For a USMultinational Corporation,consolidating the Financial Statements of Foreign Subsidiaries Requires Two

question 39

Multiple Choice

For a U.S.multinational corporation,consolidating the financial statements of foreign subsidiaries requires two steps. First,the foreign subsidiary's statements must be restated according to U.S.GAAP. The next step is to:

• A)convert the account balances into U.S.dollars.
• B)determine the exchange rate gain or loss.
• C)calculate the translation adjustment.
• D)restate the income using international accounting standards.

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Definitions:

Performance Factors

Elements that contribute to an individual's or organization's ability to achieve its objectives, including skills, knowledge, abilities, and other attributes.

Environment

The surrounding conditions, including physical, social, and cultural factors, that can influence the performance and well-being of employees.

Organizational Culture

The shared values, beliefs, and norms that influence the behavior of individuals within an organization.

Critical Incidents

Specific instances or events that significantly impact the operations or outcomes in a situation, often used for analysis in problem-solving or performance evaluation.