Which of the Following Defines a Foreign-Based Entity That Uses

question 23

Multiple Choice

Which of the following defines a foreign-based entity that uses a functional currency different from the local currency?
I.A U.S.subsidiary in Britain maintains its accounting records in pounds sterling,with the majority of its transactions denominated in pounds sterling.
II.A U.S.subsidiary in Peru conducts virtually all of its business in Latin America,and uses the U.S.dollar as its major currency.

• A) I.
• B) II.
• C) Both I and II.
• D) Neither I nor II.

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Definitions:

Three-Phase Motors

Electric motors designed to operate on a three-phase alternating current supply, offering high efficiency and a smooth power delivery for industrial applications.

Degrees Out

A phrase indicating that something is misaligned or out of its proper orientation by a certain angle.

Magnetic Fields

Invisible fields produced by electric currents or magnetic materials, which exert forces on moving charges or other magnetic materials within the field.

Electro-Magnets

Magnets created by passing an electric current through a coil of wire surrounding a metal core.