What is ABC Philippines Co.’s functional currency?A. none of the choices given B. Philippine peso C. Either Philippine Peso or U.S dollar D.U.S. dollar You are an auditor. ABC Philippines Co., your client, is not sure on whatto disclose in its financial statements as its functional currency. Relevantinformation follows:ABC Philippines Co. is a branch of ABC U.S. Co. ABC Philippines operates ina Philippine Economic Zone Authority (PEZA) Special Economic Zone.Philippines is engaged in the apparel business. All of its raw materialsare imported from the main office in the U.S. and all of its finishedproducts are exported directly to U.s. customers. The U.S. customers remitpayments to the U.S. main office. The U.S. main office will then providethe Philippine branch its working capital needs. None of ABC PhilippinesSes finished products are sold in the Philippines. Theimported and finished goods exported are denominated in U.S. dollars.ABCraw materials

Functional currency is the currency in which the operates. It is the currency of the primary…

You are an auditor. ABC Philippines Co., your client, is not sure on what to disclose in its financial statements as its functional currency. Relevant information follows: ABC Philippines Co. is a branch of ABC U.S. Co. ABC Philippines operates in a Philippine Economic Zone Authority (PEZA) Special Economic Zone. ABC Philippines is engaged in the apparel business. All of its raw materials are imported from the main office in the U.S. and all of its finished products are exported directly to U.s. customers. The U.S. customers remit payments to the U.S. main office. The U.S. main office will then provide the Philippine branch its working capital needs. None of ABC Philippines Sos' finished products are sold in the Philippines. The raw materials imported and finished goods exported are denominated in U.S. dollars.

You are an auditor. ABC Philippines Co., your client, is not sure on what to disclose in its financial statements as its functional currency. Relevant information follows: ABC Philippines Co. is a branch of ABC U.S. Co. ABC Philippines operates in a Philippine Economic Zone Authority (PEZA) Special Economic Zone. ABC Philippines is engaged in the apparel business. All of its raw materials are imported from the main office in the U.S. and all of its finished products are exported directly to U.s. customers. The U.S. customers remit payments to the U.S. main office. The U.S. main office will then provide the Philippine branch its working capital needs. None of ABC Philippines Sos' finished products are sold in the Philippines. The raw materials imported and finished goods exported are denominated in U.S. dollars.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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