In determining an entity's functional currency,factors to be considered include which of the following?
A)the currency of the country whose competitive forces and regulations mainly determine the sales price of its goods and services
B)the currency that mainly influences sales prices for goods and services
C)the currency in which receipts from operating activities are usually retained
D)all of the above

Question

Quizplus · Accepted Answer

All of the options given are factors that should be considered when determining an entity's functional currency. The functional currency is the currency that an entity primarily uses in its daily operations and reporting. It is important to consider the currency that influences sales prices, as well as the one that receipts from operating activities are usually retained in. Additionally, the currency of the country that mainly determines the sales price of goods and services can be influential in determining an entity's functional currency.

In Determining an Entity's Functional Currency,factors to Be Considered Include