The Translation Adjustment from Translating a Foreign Subsidiary's Financial Statements

question 30

Multiple Choice

The translation adjustment from translating a foreign subsidiary's financial statements should be shown as

• A) an asset or liability (depending on the balance) in the consolidated balance sheet.
• B) a revenue or expense (depending on the balance) in the consolidated income statement.
• C) a component of stockholders' equity in the consolidated balance sheet.
• D) a component of cash flows from financing activities in the consolidated statement of cash flows.
• E) an element of the notes which accompany the consolidated financial statements.

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Definitions:

Nervous System

The complex network of nerves and cells that carry messages to and from the brain and spinal cord to various parts of the body.

Cortisone

A steroid hormone used as a medication to treat inflammation and immune system diseases.

Parathyroid Gland

Small endocrine glands in the neck that produce parathyroid hormone, which regulates calcium levels in the blood.

Serum Calcium Levels

The concentration of calcium in the blood, important for bone health, muscle function, and nerve signaling.