An entity's functional currency is:
A)always the currency of it place of domicile, for an Australian company the A$
B)a foreign currency used as the benchmark in converting other foreign currencies into the currency of the place of domicile
C)the currency in which most of its activities are denominated
D)always its domestic currency

Question

Quizplus · Accepted Answer

The functional currency of an entity is the currency in which most of its activities are denominated. It can be a foreign currency or the domestic currency depending on the operations of the entity. Therefore, options A and D are not always correct, and option B is not a definition of functional currency.

An Entity's Functional Currency Is