Under FASB ASC 830, Foreign Currency Matters, What Is the Definition

question 36

Multiple Choice

Under FASB ASC 830, Foreign Currency Matters, what is the definition of "functional currency?"

• A) The primary currency used by the parent company
• B) The currency that minimizes the translation adjustment on the consolidated financial statements
• C) The currency in which the subsidiary does its financial reporting
• D) The primary currency of the foreign entity's operating environment

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Definitions:

Processing Department

A division within a manufacturing facility where a particular type of processing or assembly operation is carried out.

Equivalent Unit

A measure used in cost accounting to express the amount of work done by manufacturers on units of production, partial or complete, within a specific period.

Processing Department

A division or area within a manufacturing facility where a specific type of production occurs, focusing on a particular operation or process.

Materials

The substance or substances out of which a thing is or can be made, typically used in the context of manufacturing or production.