Functional currency is the currency of the economic environment in which a business entity primarily generates and expends cash, and in which its accounts are maintained.

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Functional currency is defined as the currency that is used by a business entity primarily in its operations and in which its financial statements are prepared. This currency is usually the currency of the country in which the entity operates, although there may be situations where another currency is used as the functional currency.

Functional Currency Is the Currency of the Economic Environment in Which