Indicators Pointing Towards the Reporting Entity's Currency as the Functional

question 6

Multiple Choice

Indicators pointing towards the reporting entity's currency as the functional currency include that which of the following?

• A) There are active local markets, although there may be significant amounts of exports.
• B) Sales are mostly in the country of the reporting entity.
• C) Prices are not primarily responsive in the short term to exchange rate changes.
• D) Production costs and operating expenses are determined primarily by local conditions.