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In the Process of Consolidating the Translated Financial Accounts of a Foreign

Question 33

Multiple Choice

In the process of consolidating the translated financial accounts of a foreign operation, what will be the form of the journal entry required to eliminate the foreign currency effect of a purchase of inventory by the subsidiary from the parent entity? Assume that the value of the foreign currency of the foreign operation has increased relative to the reporting currency.


A) In the process of consolidating the translated financial accounts of a foreign operation, what will be the form of the journal entry required to eliminate the foreign currency effect of a purchase of inventory by the subsidiary from the parent entity? Assume that the value of the foreign currency of the foreign operation has increased relative to the reporting currency. A) B) C) D) E) None of the given answers.
B) In the process of consolidating the translated financial accounts of a foreign operation, what will be the form of the journal entry required to eliminate the foreign currency effect of a purchase of inventory by the subsidiary from the parent entity? Assume that the value of the foreign currency of the foreign operation has increased relative to the reporting currency. A) B) C) D) E) None of the given answers.
C) In the process of consolidating the translated financial accounts of a foreign operation, what will be the form of the journal entry required to eliminate the foreign currency effect of a purchase of inventory by the subsidiary from the parent entity? Assume that the value of the foreign currency of the foreign operation has increased relative to the reporting currency. A) B) C) D) E) None of the given answers.
D) In the process of consolidating the translated financial accounts of a foreign operation, what will be the form of the journal entry required to eliminate the foreign currency effect of a purchase of inventory by the subsidiary from the parent entity? Assume that the value of the foreign currency of the foreign operation has increased relative to the reporting currency. A) B) C) D) E) None of the given answers.
E) None of the given answers.

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