The functional currency is
A) the U.S. dollar.
B) any currency other than the parent currency.
C) the currency of the primary economic environment in which the firm operates.
D) the currency in the country where the foreign firm is operating as long as it is also the reporting currency.

Question

Quizplus · Accepted Answer

The functional currency is the currency of the primary economic environment in which the firm operates. It represents the currency in which the company generates and expends cash flows and typically reflects the currency of the country in which the majority of its operations are located.

The Functional Currency Is