Identify the Following Terms

question 48

Short Answer

Identify the following terms.
-Karl Mauch/19th century Europeans

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Definitions:

Translation Rate

The rate used to convert financial statements of a foreign operation into the presentation currency of the reporting entity.

Foreign Currency

Currency that is used in a country other than the one where a company or individual is based.

Foreign Exchange

The conversion of one country's currency into another currency.

Functional Currency

The currency of the primary economic environment in which the entity operates and reports its financial statements.