Functional currency is the currency of the primary economic environment in which it operates.

Question

Quizplus · Accepted Answer

Functional currency is the currency that reflects the primary economic environment in which the entity operates, indicating the currency of the primary environment where the entity essentially generates and expends cash. It is used to measure and present financial statements, as well as to analyze the financial results of operations of the entity.

Functional Currency Is the Currency of the Primary Economic Environment