A debit balance in a parent's cumulative translation adjustment after the first year of owning a foreign subsidiary suggests which of the following is true?
A) The exchange rate has strengthened relative to the U.S.dollar.
B) The exchange rate has weakened relative to the U.S.dollar.
C) The foreign entity had net income but there was not a change in exchange rates.
D) The foreign entity had a net loss but there was not a change in exchange rates.
Correct Answer:
Verified
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