Which of the following statements is true? Multiple Choice The parent company accrues its share...
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Accounting
Which of the following statements is true? Multiple Choice The parent company accrues its share of the subsidiary's net Income after it has been translated into Canadian dollars. Consolidated net Income is the same under the functional currency translation (FCT) method and the presentation currency translation (PCT) method. Under the presentation currency translation (PCT) method the exchange gain or loss is reported in regular income. Integrated subsidiaries usually have a net asset exposure to exchange rate fluctuations. Which of the following characteristics best describes a foreign operation with a functional currency not the same as the parent? Multiple Choice It has a selling price for its products that is established in the Canadian market. It purchases raw materials from the parent company. It has very little cash flow to or from the parent company. It has a significant number of Intercompany transactions with the parent company. Which of the following assets and/or liabilities are considered monetary? Multiple Choice Intangible Assets and Plant, Property, and Equipment. Cash and Accounts Payable. Notes Receivable and Inventories carried at cost. O Bonds Payable and Common Shares
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