According to FASB ASC 830,Foreign Currency Matters,which of the following conditions would indicate that a foreign subsidiary's functional currency is the parent company's currency?
A)active local sales market
B)sales price not affected by changes in exchange rate in the short run
C)high volume of intercompany transactions
D)All of the above are indicators that the functional currency is the parent company's currency.

Question

Quizplus · Accepted Answer

A high volume of intercompany transactions suggests that the foreign subsidiary is closely integrated with the parent company, indicating that the parent company's currency is likely the functional currency.

According to FASB ASC 830,Foreign Currency Matters,which of the Following