What Is a Company's Functional Currency

question 16

Multiple Choice

What is a company's functional currency?

• A) The currency of the primary economic environment in which it operates.
• B) The currency of the country where it has its headquarters.
• C) The currency in which it prepares its financial statements.
• D) The reporting currency of its parent for a subsidiary.
• E) The currency it chooses to designate as such.

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Definitions:

Corner Store

A small retail outlet, often found in urban areas or neighborhoods, that stocks a range of everyday items such as groceries, snacks, and household goods.

Frozen

The term "frozen" can refer to a state of being solidified by cold, or metaphorically, to a situation or process that has been stopped or immobilized.

American Medical Association

The American Medical Association (AMA) is a professional group that represents the interests of physicians and health professionals in the United States and aims to improve public health policies.

Legitimizes

The process of making something acceptable, valid, or justified according to established rules, standards, or beliefs.