Which One of the Following Statements Would Justify This Conclusion

question 52

Multiple Choice

Which one of the following statements would justify this conclusion?

• A) Most of the subsidiary's sales and purchases were with companies in the U.S.
• B) Dilty's functional currency is the dollar and Dilty is the parent.
• C) Dilty's other subsidiaries all had the dollar as their functional currency.
• D) Generally accepted accounting principles require that the subsidiary's functional currency must be the dollar if consolidated financial statements are to be prepared.
• E) Dilty is located in the U.S.

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Definitions:

Capital Structure

The particular combination of debt and equity that a company uses to finance its overall operations and growth.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value.

Market Price

The current price at which an asset or service is bought or sold in the marketplace.

Capital Accounts

Financial records showing the ownership interests and funds contributed or withdrawn by owners or investors in a company.