When It Is Not Clear What the Functional Currency Is

question 7

Multiple Choice

When it is not clear what the functional currency is, an accountant must use professional judgment to choose the functional currency. What is the main criterion upon which the choice should be based?

• A)Whether it faithfully represents the accounting effects of the transactions and events
• B)Whether it faithfully represents the economic effects of the transactions and events
• C)Whether it faithfully represents the translation effects of the transactions and events
• D)Degree to which it minimizes accounting exposure

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Definitions:

The Pre-Approach

A step in the sales process involving research and planning before making direct contact with a potential customer.

Desired Action

The specific behavior or response a marketer aims to elicit from the target audience.

Purchase Satisfaction

A measure of how pleased a customer is with a purchased product or service and the buying experience.

Office Manager

A professional tasked with organizing and coordinating office administration and procedures, aiming to ensure efficiency and compliance in the workplace.