The Eliminations and Adjustment Entries Necessary to Consolidate the Parent

question 25

Multiple Choice

The eliminations and adjustment entries necessary to consolidate the parent and subsidiary financial statements are translated as follows:

• A)​all balances, profits, and losses at the current exchange rate on the consolidation date
• B)​intercompany balances translate at the rates used for other accounts, profits and losses may be translated at an average rate
• C)​intercompany balances translate at the current rates, profits and losses translate at an average rate
• D)​none of the above are correct

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Definitions:

Marginal Cost

The cost associated with the production of an additional unit of a good or service.

Internet Explorer

A discontinued web browser that was developed by Microsoft, once a dominant choice for internet access but replaced by newer technologies.

Anticompetitive

Practices or policies that reduce or hinder competition within a market or industry.

Tying Contracts

Agreements where the buyer of a product or service is required to purchase an additional product or service that exists in a separate market.