Where Profits Generated by the Foreign Operation Are Retained in the Foreign

Multiple Choice

Where profits generated by the foreign operation are retained in the foreign entity and used for its expansion:

A) the foreign operation's currency is likely to be the presentation currency.
B) the foreign operation's currency is likely to be the functional currency.
C) the reporting entity's currency is likely to be the functional currency.
D) the reporting entity's currency is likely to be the presentation currency.