An entity's functional currency is the currency of the primary economic environment in which the entity operates the currency on which the financial statements have been prepared the currency in the domicile country of the entity all of these

An entity's functional currency is the currency of the primary economic environment in which the entity operates the currency on which the financial statements have been prepared the currency in the domicile country of the entity all of these

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 14QE

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Question

MCQs

An entity's functional currency is

the currency of the primary economic environment in which the entity operates

the currency on which the financial statements have been prepared

the currency in the domicile country of the entity

all of these

According to PAS 21, a reporting entity

shall have only one functional currency

shall have only one presentation currency

may present its financial statements using any presentation currency it wishes

a and c

The following are ways of conducting foreign activities

Engaging in foreign currency-denominated transactions

having foreign operations

sending personnel abroad for training and conferences

a and b

According to PAS 21, a reporting entity is

required to identify its functional currency

encouraged to identify its fuctional currency

required to identify its presentation currency

a and c

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