Once a company's functional currency is identified, all transactions denominated in another currency are considered to be foreign currency transactions.

Question

Quizplus · Accepted Answer

Once a company's functional currency is identified, any transaction that is denominated in another currency is considered a foreign currency transaction. This applies regardless of the country where the transaction occurs or the currency that is involved. Therefore, the statement is true.

Once a Company's Functional Currency Is Identified, All Transactions Denominated