To prepare consolidated financial statements when a U.S. parent company has an international subsidiary, the international subsidiary's financial statements must be translated into U.S. dollars.

Question

Quizplus · Accepted Answer

This is true. To create consolidated financial statements, the financial statements of all subsidiaries, including international subsidiaries, must be translated into the parent company's currency, which is typically U.S. dollars for U.S. parent companies. This process is called currency translation or foreign currency translation.

To Prepare Consolidated Financial Statements When a U