Respond to the Following

question 77

Essay

Respond to the following:
a. What does the term functional currency mean?
b. What is the accounting treatment if the foreign entity's currency in the functional currency?
c. What is the accounting treatment if the U.S. currency is the functional currency?

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Definitions:

Follower Brands

Brands that enter a market by following the trends set by the leading brands, rather than innovating on their own.

Incremental Innovation

Refers to minor improvements or simple adjustments made to existing products, services, or processes.

Market Driven

Describes a business strategy or approach that is guided by the needs and wants of the market and customers.

Follower Brands

Brands that do not lead in innovation or market share in their category but follow trends set by others, often focusing on adapting to established market dynamics.