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

question 63

Multiple Choice

Which of the following defines a foreign-based entity that uses a functional currency different from the recording 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,records transactions in the respective local currencies,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:

Benefit

an advantage or profit gained from something, or the act of improving or advancing in a particular aspect.

Requirement

A specified necessity; conditions or capabilities needed by a user to solve a problem or achieve an objective.

Negative Connotations

Implications or associations of a word or phrase that evoke negative feelings or perceptions.

Fail

to fall short of success in achieving a goal or meeting a standard, often leading to negative consequences or the need for reevaluation.