International Accounting Standards Define Functional Currency As

question 50

Multiple Choice

International accounting standards define functional currency as:

• A) the currency of the parent company.
• B) the currency of the primary economic environment in which the subsidiary operates.
• C) the currency of the primary economic environment in which the parent operates.
• D) the currency used by a subsidiary for its financial reporting.

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Definitions:

Action Spectrum

A graph of the effectiveness of light at specific wavelengths in promoting a light-requiring reaction. Compare with absorption spectrum.

Absorption Spectrum

A graph of the amount of light at specific wavelengths that is absorbed as light passes through a substance. Each type of molecule has a characteristic absorption spectrum. Compare with action spectrum.

Carotenoids

A class of pigments found naturally in plants, algae, and photosynthetic bacteria, important for photosynthesis and providing coloration.

Chlorophylls

A class of green pigments responsible for the absorption of light energy during photosynthesis in plants, algae, and cyanobacteria.