Which of the Following Statements About a Presentation Currency Is

question 43

Multiple Choice

Which of the following statements about a presentation currency is FALSE?

• A)The functional currency must be the same as the presentation currency.
• B)When a group is involved, one presentation currency must be selected for presentation of the entire group.
• C)Entities may choose to present their financial statements in any currency based on management's monitoring of the performance and financial position of entities within such a group.
• D)When the financial statements of foreign operations are included in the group's financial statements by consolidation, or the equity method, they are translated for presentation purposes into a single currency referred to as the presentation currency.

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Definitions:

Reality Testing

A psychological process to distinguish what is internally fantasized from what is external and real in the environment.

Evidence-based Medicine

The conscientious use of current best evidence in making decisions about the care of individual patients.

Evidence-based

A decision-making process that involves integrating best available research evidence with practitioner expertise and client preferences.

Decision Cycle

The process through which choices are identified, considered, and acted upon in a cyclical manner.