The balance sheets of foreign firms,prepared in their local currencies,must be in balance (assets equal liabilities plus

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The balance sheets of foreign firms,prepared in their local currencies,must be in balance (assets equal liabilities plus shareholders’equity).Yet when such balance sheets are translated to U.S. dollars, they usually require a “translation adjustment”in order to balance. Explain why this is so. LPO8

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Financial Accounting Reporting And Analysis

ISBN: 9780324149999

6th Edition

Authors: Earl K. Stice, James Stice, Michael Diamond, James D. Stice

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