In Preparing the Consolidated Cash Flow Statement for an Entity

question 13

Multiple Choice

In preparing the consolidated cash flow statement for an entity with a foreign subsidiary, which of the following statements is most likely to be correct?

• A)the cash flow statement of the subsidiary will be prepared in the functional currency of the parent
• B)the cash flow statement of the subsidiary will be translated directly into the presentation currency used in the consolidated financial statements
• C)the cash flow statement of the subsidiary will not require translation as it will be prepared in the presentation currency used in the consolidated financial statements.
• D)there will be not translation since the subsidiary will not itself have to prepare a cash flow statement.

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Definitions:

Casual Friday Policies

Workplace dress codes that allow employees to wear more relaxed and informal attire on Fridays.

Job Titles

Designations given to specific positions within an organization, reflecting role and responsibility.

Informal Roles

Unofficial positions within a group or organization, shaped by individual interactions and behaviors, rather than assigned or formally recognized duties.

Designated Roles

Specific functions or positions assigned to individuals in a group, organization, or event.