Which of the following is an indicator that a foreign currency is the functional currency of a
Question:
Which of the following is an indicator that a foreign currency is the functional currency of a foreign subsidiary?
a. Cash flows of the foreign subsidiary directly impact the cash flows of the parent company.
b. The foreign subsidiary’s sales market primarily is in the parent company’s country.
c. The foreign subsidiary primarily obtains its financing in a foreign currency.
d. There is a high volume of transactions between the foreign subsidiary and the parent company.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Advanced Accounting
ISBN: 9781264798483
15th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer And Timothy Doupnik
Question Posted: