Dilty Corp. owned a subsidiary in France. Dilty concluded that the subsidiary's functional currency was the U.S. dollar.What must Dilty do to ready the subsidiary's financial statements for consolidation?
A. State all of the subsidiary's accounts in U.S. dollars using the exchange rate in effect at the balance sheet date.
B. First remeasure, then translate them.
C. Translate them.
D. Remeasure them.
E. First translate, then remeasure them.
Answer: D
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Which of the following would not be a user of financial statements?
a. Management b. Bankers c. Employee unions d. Investment analysts e. All of the answers are users.
Self-managing teams have been around since the:
a. Industrial Revolution. b. Great Depression. c. 1960s. d. 1990s.
What are the five major income categories that are taxed under the Subpart F rules? Explain the concept of Subpart F income.
What will be an ideal response?
A company accounts for possible bad debts using the allowance method. When an actual bad debt occurs, what effect does it have on the accounting equation?
A. Decreases assets and decreases stockholders' equity. B. No effect on the accounting equation. C. Increases assets and increases stockholders' equity. D. Decreases assets and decreases liabilities.