The Functional Currency of an Entity

question 49

Multiple Choice

The functional currency of an entity:

• A) never change once determined
• B) must be assessed and changed annually.
• C) can change if there is a change in underlying transactions, events and conditions which determine the functional currency.
• D) can change as a consequence of the foreign currency transactions that are undertaken by the parent entity.
• E) can change as a result of a change in management.

---

Definitions:

Reciprocal

Involving a mutual exchange or give-and-take relationship between two parties.

Videoconferencing

is the use of telecommunication technologies to conduct live meetings, presentations, or discussions via the internet between two or more participants in different locations.

Group Conferences

denote meetings involving multiple participants, typically focusing on educational, social, or professional topics.

Sending Notes

The act of transmitting messages or information, typically in written form, from one person to another through various means including paper, electronic communication, or other channels.