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A Debit Balance in a Parent's Cumulative Translation Adjustment After

Question 24

Multiple Choice

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.

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