For a U.S. multinational corporation, consolidating the financial statements of foreign subsidiaries requires two steps. First, the foreign subsidiary's statements must be restated according to U.S. GAAP. The next step is to:
A)convert the account balances into U.S. dollars.
B)determine the exchange rate gain or loss.
C)calculate the translation adjustment.
D)restate the income using international accounting standards.
Answer:A
For a U.S. multinational corporation, consolidating the financial statements of foreign subsidiaries requires two steps. First, the foreign subsidiary's statements must be restated according to U.S. GAAP. The next step is to:
A)convert the account balances into U.S. dollars. B)determine the exchange rate gain or loss. C)calculate the translation adjustment. D)restate the income using international accounting standards.