What is a company's functional currency?
A) The currency of the primary economic environment in which it operates.
B) The currency of the country where it has its headquarters.
C) The currency in which it prepares its financial statements.
D) The reporting currency of its parent for a subsidiary.
E) The currency it chooses to designate as such.

Question

Quizplus · Accepted Answer

The functional currency is defined as the currency of the primary economic environment in which the company operates, which is typically where it generates and expends cash.

What Is a Company's Functional Currency