If the functional currency of the foreign entity is the same as the parent's functional currency, which of the following statements is correct?
A) The foreign entity is classified as integrated.
B) The foreign entity is classified as self-sustaining.
C) The foreign entity is classified as a foreign affiliate.
D)The investment in the foreign entity is classified as a non-monetary asset.

Question

Quizplus · Accepted Answer

If the functional currency of the foreign entity is the same as the parent's functional currency, the foreign entity is classified as integrated, meaning its operations are closely tied to the parent company's operations.

If the Functional Currency of the Foreign Entity Is the Same