Under IAS 21, Which of the Following Is NOT a Factor

question 13

Multiple Choice

Under IAS 21, which of the following is NOT a factor in determining functional currency?

• A) It is the currency that influences sales prices for goods and services.
• B) It is the currency that mainly influences labor, material and other costs of providing goods and services.
• C) It is the currency least likely to experience hyperinflation.
• D) It is the currency in which funds from financing activities are generated.

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Definitions:

Erosion

The process by which natural forces like water, wind, ice, and gravity remove and transport soil and rock materials from one location to another.

High-risk Areas

Regions that are highly susceptible to natural disasters, environmental hazards, or other significant risks.

Thrust Fault

A geological fault in which the upper block, or hanging wall, is pushed up and over the lower block, or footwall, often forming mountains or ridges.

Sea Level

The average height of the ocean's surface between the high and low tide, used as a reference point in measuring elevation and depths on Earth.