Mazeppa,Inc.is a multinational entity with its head office located in Toronto,Canada.Its main foreign subsidiary is in Paris,France,but the primary economic environment in which the foreign subsidiary generates and expends cash is in the United States.Based on this information,which of the following statements is most likely true for Mazeppa,Inc.?
A) The functional currency is the Euro.
B) The local currency is the U.S. dollar.
C) The reporting currency is the Canadian dollar.
D) The reporting currency is the U.S. dollar.

Question

Quizplus · Accepted Answer

The reporting currency is the currency in which the parent company, Mazeppa, Inc., prepares its financial statements, which is likely the Canadian dollar since the head office is in Toronto, Canada.