Which of the following is an indicator that a foreign currency is the functional currency of a

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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.

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Advanced Accounting

ISBN: 9781264798483

15th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer And Timothy Doupnik

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