Briefly Explain the Following Terms Associated with Accounting for Foreign

question 26

Essay

Briefly explain the following terms associated with accounting for foreign entities:
a)Functional Currency
b)Translation
c)Remeasurement

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Definitions:

Industrial Investment

Funds allocated towards the development or expansion of industrial activities, including manufacturing and production facilities.

Secondary Market

The marketplace for buying and selling previously issued securities or financial instruments, such as stocks and bonds.

Initial Sale

The first time a company's product or service is sold, marking the beginning of its commercial journey.

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.