The functional currency of a Colombian manufacturing subsidiary selling exclusively to the U.S.
A) depends on where it sources its raw materials
B) depends on where it sells the completed product
C) will be the Colombian peso
D) will be the U.S. dollar

Question

Quizplus · Accepted Answer

The functional currency of a Colombian manufacturing subsidiary selling exclusively to the U.S. would be the U.S. dollar because the subsidiary is earning revenue in U.S. dollars and dealing exclusively in a foreign currency.

The Functional Currency of a Colombian Manufacturing Subsidiary Selling Exclusively