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Basic Question 1 of 2
The primary currency of the foreign entity's operating environment is known as the
B. functional currency.
C. presentation currency.
A. local currency.
B. functional currency.
C. presentation currency.
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I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
compare the current rate method and the temporal method, evaluate how each affects the parent company's balance sheet and income statement, and determine which method is appropriate in various scenarios;
calculate the translation effects and evaluate the translation of a subsidiary's balance sheet and income statement into the parent company's presentation currency;
CFA® 2026 Level II Curriculum, Volume 2, Module 12.