Which of the Following Factors Indicate That the Functional Currency

question 29

Multiple Choice

Which of the following factors indicate that the functional currency of a foreign operation is that of the reporting entity?

• A) The activities of the foreign operation are carried out as an extension of the activities of the reporting entity rather than being carried out with a significant degree of autonomy.
• B) Transactions with the reporting entity are a high proportion of the activities of the foreign operation.
• C) The day-to-day financing of the foreign operation is supplied by the reporting entity and the cash flows of the foreign operation directly affect the cash flows of the reporting entity.
• D) All of the above.