4.A US multinational corporation, consolidating the financial statements of foreign subsidiaries requires 2 steps. 1st the foreign subsidiary statements must be restated according to the U. S GAAP (Generally Accepted Accounting Principle). 2nd:

1)The foreign subsidiary statements must be restated according to the U.S GAAP (Generally Accepted Accounting Principle).

2) convert the account balances into U.S. dollars.

Explanation:

A US multinational corporation, consolidating the financial statements of foreign subsidiaries requires 2 steps.

1)The foreign subsidiary statements must be restated according to the U.S GAAP (Generally Accepted Accounting Principle).The foreign subsidiaries submit financial statements as per the accounting standard in their country .Hence their arises a need to restate the same as per the GAAP standards

2) Convert the account balances into U.S. dollars:The financial statements submitted by foreign subsidiaries reflect the currency used by the foreign country .Hence the next important step is to convert it into US Dollars

GAAP is a US based accounting standard adopted by U.S. Securities and Exchange Commission. It sets standard of business and corporate accounting.