Which of he following defines a foreign-based entity that uses a functional currency different from the local 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, and uses the U.S. dollar as its major currency.
A. I.
B. II.
C. Both I and II.
D. Neither I nor II.