Functional currency is
A) the currency of the primary economic environment in which the subsidiary operates and generates cash flows.
B) the currency of the country where the corporation is incorporated.
C) the weighted average of the currencies of all foreign subsidiaries.
D) the currency proscribed by the national laws of the subsidiary's country of incorporation.

Question

Quizplus · Accepted Answer

Functional currency is the currency of the primary economic environment in which the subsidiary operates and generates cash flows. It is the currency in which the subsidiary conducts its operations and is usually the currency in which the subsidiary keeps its books and records.

Functional Currency Is