Note: This Is a Kaplan CPA Review Question

question 36

Multiple Choice

Note: This is a Kaplan CPA Review Question
Mazeppa, Inc. is a multinational entity with its head office located in Toronto, Canada. Its main foreign subsidiary is in Paris, France, but the primary economic environment in which the foreign subsidiary generates and expends cash is in the United States. Based on this information, which of the following statements is most likely true for Mazeppa, Inc.?

• A) The functional currency is the Euro.
• B) The local currency is the U.S. dollar.
• C) The reporting currency is the Canadian dollar.
• D) The reporting currency is the U.S. dollar.