What Is a Company's Functional Currency

question 16

Multiple Choice

What is a company's functional currency?

• A) The currency of the primary economic environment in which it operates.
• B) The currency of the country where it has its headquarters.
• C) The currency in which it prepares its financial statements.
• D) The reporting currency of its parent for a subsidiary.
• E) The currency it chooses to designate as such.

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Definitions:

Guidelines

a set of recommendations or instructions designed to advise or guide actions in specific situations.

National Institutes of Health

A part of the U.S. Department of Health and Human Services and the primary agency of the United States government responsible for biomedical and public health research.

Laboratory

A controlled environment where scientific research, experiments, and measurement are conducted by specialists using specific equipment and techniques.

Cholera

An infectious disease causing severe diarrhea and dehydration, usually spread through contaminated water.