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.

Question

Quizplus · Accepted Answer

After restating the foreign subsidiary's statements according to U.S. GAAP, the account balances need to be converted into U.S. dollars in order to consolidate the financial statements. This step is necessary to present a complete and accurate overall financial picture of the multinational corporation.

For a USMultinational Corporation,consolidating the Financial Statements of Foreign Subsidiaries Requires Two