Which of the following statements is incorrect?
A)the presentation currency is the currency in which the financial statements are presented
B)the functional currency of the entity or foreign operation will normally be obvious to management of an entity or foreign operation.
C)individual entities and foreign operations must determine their functional currency
D)the functional currency is the currency in which the financial statements are presented

Question

Quizplus · Accepted Answer

The statement "the functional currency is the currency in which the financial statements are presented" is incorrect as the functional currency refers to the currency of the primary economic environment in which the entity or foreign operation operates, whereas the presentation currency is the currency in which the financial statements are presented.

Which of the Following Statements Is Incorrect