The Process of Consolidation Is Very Procedural, That Is to Say

question 45

Multiple Choice

The process of consolidation is very procedural, that is to say that there are several steps involved in the production of consolidated financial statements that reflect appropriate balances where transactions denominated in foreign currencies are concerned. Which of the following is Step 1?

• A)Execute consolidation adjustments.
• B)Eliminate intercompany balances and transactions.
• C)Translation of foreign currency transactions into an entity's functional currency.
• D)Translation of balances into the presentation currency for the purposes of consolidation or the equity method.

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Definitions:

Ethnomethodologists

Ethnomethodologists are social scientists who study the ways in which people create and maintain a sense of social order in everyday life through their routines, practices, and interpersonal interactions.

Accounts

An explanation or report about events or actions, often used in accounting and finance to reflect financial transactions.

Sociologists

Scholars who study society and social behavior by examining the groups, institutions, and processes that people develop and participate in.

Ethnomethodologists

Researchers who study the ways in which people create, maintain, and understand their social realities through everyday practices.