Under IAS 21,which of the Following Is Not a Factor

question 8

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:

Common Stock

A form of corporate equity ownership, a type of security representing an ownership interest in a company.

Liability

A company's legal debts or obligations that arise during the course of business operations.

Asset

An economic resource owned or controlled by a person or entity, which is expected to provide future benefits.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; represents the owners' share.