Which of the following statements is true? a. Sales Prices influenced primarily by local competitive conditions and
Question:
Which of the following statements is true?
a. | Sales Prices influenced primarily by local competitive conditions and not responsive on a short-term basis to exchange rate changes is a conditions would result in the foreign currency being the functional currency. | |
b. | Financing denominated in the currency of the foreign unit or generated internally by the foreign unit s a conditions would result in the foreign currency being the functional currency. | |
c. | Low volume of intercompany transactions and little operational interrelations between the parent and foreign unit is a conditions would result in the foreign currency being the functional currency. | |
d. | The lesser the degree of earnings retention by the foreign unit is a conditions would result in the foreign currency being the functional currency. |
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain