When determining the functional currency,
A) if the sales prices for the foreign entity's products are generally not responsive on a short-term basis to exchange rate changes, but are determined more by local competition and government regulation, the local currency should be the functional currency.
B) if there is an active local market for the foreign entity's products the local currency should be the functional currency.
C) if factor of production costs for the foreign entity are primarily, and on a continuing basis, costs for components obtained from the parent's country the function currency should be the home currency.
D) all of the above
Correct Answer:
Verified
Q41: FASB 8 is essentially the
A)current/noncurrent method.
B)monetary/nonmonetary method.
C)temporal
Q46: Which of the above statements pertain to
Q49: Consider a U.S.-based MNC with manufacturing activities
Q50: A U.S. parent firm, as result of
Q52: Which of the following is a translation
Q52: The International Accounting Standards Committee
A)is now known
Q53: FASB 8
A)required taking foreign exchange gains or
Q54: The currency of the primary economic environment
Q55: In implementing FASB 52,
A)the functional currency of
Q56: The "functional currency" is defined in FASB
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents