A U.S. company has several international subsidiaries, which it converts to U.S. dollars by remeasuring the subsidiaries' local currency accounts directly into U.S. dollars. Which statement is true concerning these subsidiaries?

Question

Quizplus · Accepted Answer

The functional currency is the U.S. dollar if the subsidiaries' local currency accounts are being remeasured directly into U.S. dollars. This indicates that the operations are highly integrated with the parent company, making the U.S. dollar the functional currency.

A US Company Has Several International Subsidiaries, Which It Converts to to U.S