Therefore, for purposes of preparing consolidated financial statements, the functional currency is
A. its reporting currency.
B. its current rate method currency.
C. the US dollar.
D. its local currency.
Answer:C
Therefore, for purposes of preparing consolidated financial statements, the functional currency is
A. its reporting currency. B. its current rate method currency. C. the US dollar. D. its local currency.
Explanation: C) Selvey must use the functional currency of the reporting entity.