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

The high volume of intercompany transactions is an indicator that the functional currency of a foreign subsidiary might be the parent company's currency, as it suggests a strong financial and operational integration with the parent company.

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