Which of the following suggests that the foreign entity's functional currency is the parent's currency?
A)Intercompany transaction volume is low.
B)Debt is serviced through local operations.
C)There is an active and primarily local market.
D)Sale prices are influenced by international factors.

Question

Which of the following suggests that the foreign entity's functional currency is the parent's currency?
A)​Intercompany transaction volume is low.
B)​Debt is serviced through local operations.
C)​There is an active and primarily local market.
D)​Sale prices are influenced by international factors.

Quizplus · Accepted Answer

Sale prices being influenced by international factors suggests that the foreign entity's functional currency is the parent's currency, as it indicates the entity's operations are significantly impacted by international economic environments, possibly aligning more closely with the parent's currency environment.

Which of the Following Suggests That the Foreign Entity's Functional