Question
Which of the following statements regarding the functional currency under US GAAP is least accurate? A)Self-contained, independent subsidiaries whose operations are primarily located in the
Which of the following statements regarding the functional currency under US GAAP is least accurate?
A)Self-contained, independent subsidiaries whose operations are primarily located in the local market will use the local currency as the functional currency. | ||
B)The functional currency is defined as the primary currency of the economic environment in which the parent firm operates. | ||
C)If a firm operates in a country or environment which is subject to cumulative inflation of 100% or more over a three year period, that firm will use the parent's currency as the functional currency. |
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