Oracle Analytics Cloud 2020 Implementation Essentials — Question 24

Company 123 is a public company that reports in US Dollars. Company 123 owns Company XYZ, a European company that consolidates in Euro. One of
Company XYZ's subsidiaries is Company IOU, headquartered in Switzerland with a functional currency of the Swiss Franc.
Which process produces USD balances for Company IOU?

Answer options

• A. translation of Company XYZ to Parent Currency
• B. A consolidation of Company 123
• C. A consolidation of Company XYZ
• D. A translation to the USD_Reporting currency member for Company IOU

Correct answer: A

Explanation

The correct answer is A because translating Company XYZ's financials to the parent currency, which is USD, will yield the USD balances for Company IOU. Options B and C are incorrect as they refer to consolidations that do not directly produce USD balances for Company IOU. Option D is also incorrect as it describes a specific conversion step rather than the overall process needed to achieve the desired USD balances.