According to AASB 121 the Effects of Changes in Foreign

question 18

Multiple Choice

According to AASB 121 The Effects of Changes in Foreign Exchange Rates,the key economic factor to consider in determining an entity's functional currency is:

• A)which economic environment has the higher exchange rate.
• B)in which economic environment does the company incur the highest proportion of its production costs.
• C)which economic environment an entity primarily generates and spends cash.
• D)none of the above.

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Definitions:

Medium-run

A term used in economics to describe a period in which output and other economic indicators can adjust to changes.

Human Resource Forecasting Model

A strategy used in HR management to predict an organization's future labor needs and talent demands.

Human Judgment

The process of forming opinions or making decisions based on personal knowledge, feelings, or criteria rather than on objective evidence.

Qualitative

Pertaining to data or research that is descriptive in nature and concerned with understanding and interpreting complex human behaviors and experiences.