Dilty Corp

question 71

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 them, then remeasure them.
• B) first remeasure them, 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:

Perfected

In legal and financial contexts, describes a security interest or claim that has been legally established and recorded, making it enforceable against third parties.

Secured Party

A lender or creditor that has a claim on assets (collateral) of the borrower if the loan is not repaid according to agreed terms.

Collateral

Property or assets that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the agreed terms.

Consumer Goods

Products and commodities that are bought and used by individuals and households for personal or household consumption.