CAF-6 · Chapter 4 · Question 7 of 15
Which of the following is a primary indicator for determining an entity's functional currency?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The currency that mainly influences sales prices for goods and services.
Explanation
Primary indicators include the currency that mainly influences sales prices and the currency of the country whose competitive forces determine those prices.
More IAS 21 Foreign Currency Transactions MCQs
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