Chapter 10 - Chapter 10 Translation Exposure Management 1....

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Chapter 10 Translation Exposure Management 1. Translation exposure means that . A. a firm incurs actual losses in foreign exchange markets B. currency conversion takes place in foreign exchange market C. a firm makes actual profits in foreign exchange markets D. a firm covers its foreign exchange risk in the forward markets * E. a firm experiences an accounting impact of exchange rate changes 2. Net translation exposure means . A. the difference between exposed operating expenses and fixed assets B. the difference between exposed assets and accounts receivable * C. the difference between exposed assets and exposed liabilities D. the difference between exposed revenues and exposed expenses E. none of the above 3. The current/non-current method of currency translation will not affect . A. cash B. accounts receivable C. accounts payable D. notes payable * E. long-term debt 4. The monetary/non-monetary method of currency translation will not affect . A. cash B. accounts receivable * C. inventory D. marketable securities E. accounts payable 5. The temporal method of currency translation is almost similar to the monetary/non- monetary method except the following item . A.
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Chapter 10 - Chapter 10 Translation Exposure Management 1....

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