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    Functional currency, financial reporting practices

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    24. What is a company's functional currency?
    A) the currency of the primary economic environment in which it operates
    B) the currency of the country where it has its headquarters
    C) the currency in which it prepares its financial statements
    D) the reporting currency of its parent for a subsidiary
    E) the currency it chooses to designate as such

    25. Which of the following is not a factor influencing a country's financial reporting practices?
    A) Providers of financing
    B) Inflation
    C) Legal system
    D) Gross National Product
    E) Political and economic ties

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    https://brainmass.com/business/international-finance/functional-currency-financial-reporting-practices-107536

    Solution Preview

    24. What is a company's functional currency?
    A) the currency of the primary economic environment in which it operates
    B) the currency of the country where it has its headquarters
    C) the currency in which it prepares its financial statements
    D) the reporting currency of its parent for a subsidiary
    E) the currency it chooses to designate as such

    Answer: A) the ...

    Solution Summary

    Answers 2 multiple choice questions on functional currency, financial reporting practices.

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