In Order for the Financial Statements of a Foreign Operation

question 11

Multiple Choice

In order for the financial statements of a foreign operation to be included in the consolidated financial statements of the parent it is necessary to translate the foreign operation's financial statements into:

• A) the presentation currency of the reporting entity;
• B) the functional currency of the foreign operation;
• C) the local currency of the foreign operation;
• D) the domestic currency of the foreign operation;

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Definitions:

Market Price

Market price is the current price at which an asset or service can be bought or sold in a given market.

Underwriter

A financial specialist or institution that evaluates and assumes the risk of another party's financial products, often seen in insurance and securities.

Offering Price

The price at which shares of a company are made available for sale to the public during an initial public offering (IPO) or secondary offering.

Market Price

The current financial value at which an asset or service can be acquired or disposed of in the market.