13) Under U.S. GAAP, in preparing consolidated financial statements of a U.S. parent 13). company with a foreign subsidiary, the foreign subsidiary's functional currency is the currency: A. Of the country in which the subsidiary is located. B. Of the country in which the parent is located. C. In which the subsidiary maintains its accounting records. D. Of the environment in which the subsidiary primarily generates and expends cash. 14). 14) When translating foreign currency financial statements into the reporting currency, which of the following items would not be translated using the current (year-end) rates? A. Common stock B. Fixed assets C. Notes payable D. Accounts receivable 15) 15) When remeasuring foreign currency financial statements into the functional, which of the following items would be remeasured using historical exchange rates. A. Bonds payable. B. Accrued liabilities. C. Inventories carried at cost. D. Marketable equity securities reported at market values. 16) - 16) A balance arising from the translation or remeasurement of a subsidiary's foreign currency financial statements is reported in the consolidated income statement when the subsidiary's functional currency is the: Reporting currency Foreign Currency Yes No a