What Is a Company's Functional Currency

question 16

Multiple Choice

What is a company's functional currency?

• A) The currency of the primary economic environment in which it operates.
• B) The currency of the country where it has its headquarters.
• C) The currency in which it prepares its financial statements.
• D) The reporting currency of its parent for a subsidiary.
• E) The currency it chooses to designate as such.

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Definitions:

Learned Helplessness

A condition in which individuals believe they have no control over the outcomes of events, leading to passivity and depression.

Explanatory Style

A psychological attribute that indicates how people explain to themselves why they experience a particular event, either positive or negative.

Locus of Control

Refers to the extent to which individuals believe they can control events affecting them.

Depressive Cognitive Triad

A concept in cognitive theory of depression focusing on negative views about the self, the world, and the future held by depressed individuals.