The Impact of Financing in Determining the Functional Currency

question 56

Multiple Choice

The impact of financing in determining the functional currency

• A)financing does not impact the choice of functional currency due to the integrated nature of capital markets.
• B)if the financing of the foreign entity is primarily denominated in the foreign currency and the debt service obligations are normally handled by the foreign entity, the functional currency is the foreign currency.
• C)if the financing of the foreign entity is primarily from the parent, with debt service obligations normally handled by the parent, the functional currency is the home currency.
• D)both b) and c)

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Definitions:

Upstream

In genetics, refers to the sequences of DNA that are located before (5' to) the start of a gene, affecting its expression.

mRNA Sequence

A sequence of nucleotides in messenger RNA that specifies the order of amino acids in a protein.

Transcribed DNA Strand

The strand of DNA that serves as a template for RNA synthesis during the process of transcription.

Introns

Non-coding sections of an RNA transcript, or the DNA encoding it, that are spliced out before the RNA molecule is translated into a protein.