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.

---

Definitions:

Chlorophylls

A group of green pigments found in plants and some microorganisms, critical for photosynthesis by enabling the absorption of light energy.

Multicellular Gametangia

Specialized organs found in multicellular plants and algae that produce gametes (reproductive cells).

Green Algae

A large and diverse group of photosynthetic, often aquatic plant-like organisms, important in the ecological balance of many freshwater and marine environments.

Charophytes

Group of green algae closely related to land plants.