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What Is Meant by the Term "Functional Currency

Question 83

Multiple Choice

What is meant by the term "functional currency"?


A) The functional currency is the currency of the parent corporation.
B) The functional currency is the currency of the country in which the foreign subsidiary is located.
C) The functional currency is the currency of the parent's primary economic environment where cash is primarily received and spent.
D) The functional currency is the currency of the subsidiary's primary economic environment where cash is primarily received and spent.

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