In the translation process. we begin with a determination of whether a foreign affiliate's functional currency is
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Question:
In the translation process. we begin with a determination of whether a foreign affiliate's functional currency is also its local reporting currency. Which one of the following factors indicates that a foreign affiliate's functional currency is the US dollar itself?
a Sales prices are responsive to shortterm changes in exchange rates and worldwide competition.
b Cash flows are primarily in foreign currency and do not affect the parent's cash flows.
c Labor, materials, and other costs consist primarily of local costs to the foreign affiliate.
dFinancing is primarily obtained from local foreign sources and from the affiliate's operations
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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