The currency of the primary economic environment in which the entity operates is defined in FASB 52 as
A)the "reporting currency."
B)the "functional currency."
C)the "current currency."
D)none of the options

Question

Quizplus · Accepted Answer

According to FASB 52, the currency of the primary economic environment in which the entity operates is defined as the "functional currency." This is the currency in which an entity primarily generates and expends cash, and on which it bases its financial statements.

The Currency of the Primary Economic Environment in Which the Entity