When the Functional Currency Is Not Clearly Evident from the Application

question 16

Multiple Choice

When the functional currency is not clearly evident from the application of the primary indicators, then a secondary indicator such as the currency in which funds from _______ activities are generated should be considered.

• A)financing
• B)operating
• C)investing
• D)consolidating.

---

Definitions:

Surplus Goods

Items that exceed what is needed or used, often produced in larger quantities than necessary, leading to excess inventory.

Jethro Wood

An American inventor credited with the patented design of the cast iron plow with replaceable parts in the early 19th century.

James Watt

James Watt was a Scottish inventor, mechanical engineer, and chemist best known for his improvements to the steam engine, which played a crucial role in the Industrial Revolution.

Turnpike

A high-speed road, usually a toll road, designed for swift and efficient travel over long distances.