Which of the Following Defines a Foreign-Based Entity That Uses

Multiple Choice

Which of the following defines a foreign-based entity that uses a functional currency different from the recording currency?
I.A U.S.subsidiary in Britain maintains its accounting records in pounds sterling,with the majority of its transactions denominated in pounds sterling.
II.A U.S.subsidiary in Peru conducts virtually all of its business in Latin America,records transactions in the respective local currencies,and uses the U.S.dollar as its major currency.

A) I.
B) II.
C) Both I and II.
D) Neither I nor II.