Assume That ABCO Is a U

question 3

Multiple Choice

Assume that ABCO is a U.S. multinational corporation. Its foreign subsidiaries must report income in their respective countries according to GAAP in those countries. How must ABCO report its consolidated financial statements?

• A) ABCO must choose any one country's accounting standards and combine the subsidiary reports into the parent company's statements using that one country's GAAP.
• B) Since the company is operating in several different countries, the International Accounting Standards must be used for the consolidated financial statements.
• C) Since ABCO is a U.S. corporation, U.S. generally accepted accounting principles, or GAAP, must be used for the consolidated financial statements.
• D) On the consolidated financial statements, each subsidiary's financial results must be shown in the currency of the country where the subsidiary is located.

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Definitions:

Parietal Bone

A broad, flat bone forming the side and roof of the skull.

Intramembranous

Referring to a process of bone formation where bone develops directly from sheets of mesenchymal connective tissue.

Endochondral

Pertaining to the process of bone development from cartilage, a fundamental pathway for the formation of most bones in the body.

Bone Remodeling

Bone remodeling is a lifelong process where mature bone tissue is removed from the skeleton (resorption) and new bone tissue is formed (ossification), crucial for maintaining bone strength and mineral homeostasis.