When It Is Not Clear What the Functional Currency Is,an

Multiple Choice

When it is not clear what the functional currency is,an accountant must use professional judgement to choose the functional currency.What is the main criterion upon which the choice should be based?

A) Whether it faithfully represents the accounting effects of the transactions and events
B) Whether it faithfully represents the economic effects of the transactions and events
C) Whether it faithfully represents the translation effects of the transactions and events
D) Degree to which it minimizes accounting exposure