A Parent Company May Lend Money to a Foreign Subsidiary

A parent company may lend money to a foreign subsidiary where the settlement terms are neither planned nor likely to occur in the foreseeable future. This loan would likely be denominated on the individual company's financial statements in:

A) Either the parent company's functional currency or that of the subsidiary.
B) The parent company's functional currency.
C) The subsidiary company's functional currency.
D) The parent company's presentation currency.