Assume the Functional Currency of a Foreign Entity Is the U.S.dollar,but

question 42

Multiple Choice

Assume the functional currency of a foreign entity is the U.S.dollar,but the books are kept in euros.The objective of remeasurement of a foreign entity's accounts is to

• A)produce the same results as if the foreign entity's books were maintained in the currency of the largest customer.
• B)produce the same results as if the foreign entity's books were maintained solely in the local currency.
• C)produce the same results as if the foreign entity's books were maintained solely in the U.S.dollar.
• D)produce the results reflective of the foreign entity's economics in the local currency.

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Definitions:

Common Courtesies

Basic polite behaviors and gestures that are universally accepted and expected within a society.

Positive Reinforcement

A behavioral principle where the introduction of a stimulus following a desired behavior increases the likelihood of the behavior recurring.

Monetary Rewards

Financial incentives given to employees or individuals as a recognition of their work, achievement, or performance.

Unethical Behavior

Actions that are deemed wrong or unacceptable according to ethical standards.