When Consolidating Foreign Subsidiaries,the Foreign Subsidiary's Financial Numbers Must Be

question 76

True/False

When consolidating foreign subsidiaries,the foreign subsidiary's financial numbers must be translated into the parents' currency unit.Under GAAP,if the foreign subsidiary is merely an extension of the parent,the current rate method is used.

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Definitions:

Negotiated

A process where two or more parties discuss and come to a mutual agreement on terms and conditions, often in the context of contracts or agreements.

Indorse

Refers to the act of signing the back of a negotiable instrument, such as a check, in order to transfer ownership or to approve the terms.

UCC

The Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.

Negotiation

Negotiation is a process of discussion aimed at reaching an agreement where two or more parties with different needs and goals discuss an issue to find a mutually acceptable solution.