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 above

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 of the primary economic environment where the entity generates and expends cash and is considered the most important currency for financial reporting purposes.

The Currency of the Primary Economic Environment in Which the Entity