Accounting for foreign exchange rates Flashcards by Zarah Meethoo | Brainscape

Q

functional currency

A

the currency of the primary economic environment

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Q

Presentation currency

A

the currency in which the financial statements are presented

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Q

how do we decide on a functional currency?

A

that mainly influences sales prices
the country whose competitive forces and regulations mainly determine the sales prices of its good and services
that mainly influence labour, material and other costs

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