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24.        Which of the following statements is correct? a.            The functional currency must always be...

24.        Which of the following statements is correct?

a.            The functional currency must always be the currency of the US parent company.

b.            Non-US subsidiaries always record transactions in $US.

c.             If the foreign-currency-denominated subsidiary financial statements are already in the functional currency, but not in the parent’s currency, then the financial information must be “translated” into the parent’s currency.

d.            None of the above

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Answer #1

Correct option is: c. if the foreign - currency - denominated subsidiary financial statements are already in the functional currency, but not in the parent's currency, then the financial information must be translated in to parent's currency

The financial statements of the subsidiary must be translated in to the parent's currency from functional currency

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