When a Parent Entity Has an Overseas Subsidiary the First

question 23

Multiple Choice

When a parent entity has an overseas subsidiary the first task before consolidation is to:

• A) translate the financial statements from the functional currency to the presentation currency.
• B) translate the financial statements from the presentation currency to the functional currency.
• C) determine the functional currency of the overseas subsidiary.
• D) determine the functional currency of the parent entity.

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Definitions:

Cashier's Check

A cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.

Check Forgery

The criminal act of making or altering a check with intent to defraud, such as by changing the amount or forging the drawer's signature.

Wrongfully Held Funds

Money that is unjustly retained or withheld from its rightful owner or beneficiary.

Depositors

Individuals or entities that place money into a bank account for safekeeping and potential interest accrual.