Once determined, the functional currency is * A. No answer B. Changed every time new PFRS is issued. C.Changed at the discretion of the entity’s management D. Not changed unless there is a change in underlying transactions, events, and conditions. 2. Which of the following is least relevant in determining an entity’s functional currency? A. The currency in which cash flows from operating activities are retained.
Once determined, the functional currency is * A. No answer B. Changed every time new PFRS is issued. C.Changed at the discretion of the entity’s management D. Not changed unless there is a change in underlying transactions, events, and conditions. 2. Which of the following is least relevant in determining an entity’s functional currency? A. The currency in which cash flows from operating activities are retained.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Once determined, the functional currency is *
A. No answer
B. Changed every time new PFRS is issued.
C.Changed at the discretion of the entity’s management
D. Not changed unless there is a change in underlying transactions, events, and conditions.
2. Which of the following is least relevant in determining an entity’s functional currency?
A. The currency in which cash flows from operating activities are retained.
B. The currency that influences the entity’s sale prices and costs.
C. The currency in which the entity generates financing cash flows.
D. The currency of the country in which the entity is located.
3. According to PAS 21, exchange differences arising from the translation of financial statements to a presentation currency are recognized in *
A. Any of these
B. Other comprehensive income
C. Directly in equity
D. Profit or loss
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