_____ Which of the following items is a factor pointing toward the use of the foreign currency as the functional currency?
A) The foreign unit's sales are primarily for export to the United States.
B) A high volume of intercompany transactions occurs.
C) Financing is primarily denominated in the foreign currency.
D) The foreign unit is a foreign marketing subsidiary.
E) None of the above.

Question

Quizplus · Accepted Answer

Financing primarily denominated in the foreign currency indicates that the foreign unit's operations are significantly influenced by the local currency environment, making it a factor pointing toward the use of the foreign currency as the functional currency.

_____ Which of the Following Items Is a Factor Pointing