A factor pointing toward the use of the U.S. dollar as the functional currency is the foreign unit purchasing its inventory from vendors in the United States.

Question

Quizplus · Accepted Answer

The use of the U.S. dollar for significant transactions, such as purchasing inventory from vendors in the United States, indicates that the foreign unit's operations may be primarily denominated in or influenced by the U.S. dollar, thus pointing toward the U.S. dollar as the functional currency.

A Factor Pointing Toward the Use of the U