Which of the following factors is a primary indicator used to choose a functional currency?
A)Autonomy of the subsidiary
B)Proportion of intercompany transactions
C)Sources of competitive forces and regulations
D)Ability of subsidiary to generate cash flows to service its debts

Question

Quizplus · Accepted Answer

The primary indicator for choosing a functional currency involves considering the economic environment in which the entity operates, including sources of competitive forces and regulations, which directly affect the pricing of goods and services, and costs.

Which of the Following Factors Is a Primary Indicator Used