CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Which of the following is NOT an indicator that must be assessed in determining an entity's functional currency?

A. Financing.
B. Expenses.
C. Cash flows.
D. Retained earnings.
Correct Answer: D

Letters A through C describe three of the six indicators that must be assessed in order to determine an entity's functional currency. The three remaining indicators are sales prices, sales markets and intercompany transactions and arrangements. "Retained earnings" has no meaning in this context.

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