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:

Arbitrage

The practice of buying and selling the same asset in different markets to profit from price differences without risk.

Low-Price Market

A market characterized by goods or services being offered at relatively low prices, often due to high competition or low demand.

Base Year

A specific year chosen as a point of reference or benchmark in economic indices and other comparisons, with values in other years often expressed relative to this base.

Inflation Rate

How fast prices for goods and services overall go up, causing the value of money to go down.