CMA Study Group

CMA Exam Part 2

The functional currency of an entity is defined as the currency

a. of the entity's parent company. 
b. of the primary country in which the entity is physically located. 
c. in which the books of record are maintained for all entity operations. 
d. of the primary economic environment in which the entity operates. 




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Morgan Del Rio
Marketing and Social Media Manager
IMA
morgan.delrio@...
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Solution: D
A firm's functional should be the currency of the primary economic environment in which the firm operates and should be selected on the basis of several economic factors including cash flow, sales price, and financing indicators. 



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Morgan Del Rio
Marketing and Social Media Manager
IMA
morgan.delrio@...
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Original Message:
Sent: 07-20-2018 12:39 PM
From: Morgan Del Rio
Subject: CMA Pop Quiz Q&A 241

CMA Exam Part 2

The functional currency of an entity is defined as the currency

a. of the entity's parent company.
b. of the primary country in which the entity is physically located.
c. in which the books of record are maintained for all entity operations.
d. of the primary economic environment in which the entity operates.




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Morgan Del Rio
Marketing and Social Media Manager
IMA
<maskemail>morgan.delrio@...</maskemail>
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