When Consolidating a Foreign Subsidiary, Which of the Following Statements

question 39

Multiple Choice

When consolidating a foreign subsidiary, which of the following statements is true?

• A) Parent reports a cumulative translation adjustment from adjusting its investment account under the equity method.
• B) Parent reports a gain or loss in net income from adjusting its investment account under the equity method.
• C) Subsidiary's cumulative translation adjustment is carried forward to the consolidated balance sheet.
• D) Subsidiary's income/loss is carried forward to the consolidated balance sheet.
• E) All foreign currency gains/losses are eliminated in the consolidated income statement and balance sheet.

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Definitions:

Acculturation

The process of cultural and psychological change that results following meeting between cultures.

Exercising Sporadically

Engaging in physical activity on an inconsistent basis, which may not yield the full health benefits of a regular exercise routine.

Exercise Program

A structured regime of physical activities designed to improve health and fitness.

Male-To-Female Relations

Interactions and relationships between male and female individuals, influenced by social, cultural, and personal factors.