10 - 10 Student 1 Translation exposure refers to A accounting exposure B the effect that an unanticipated change in exchange rates will have on the

10 - 10 Student 1 Translation exposure refers to A...

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10Student: ___________________________________________________________________________1.Translation exposure refers to: A. accounting exposureB.the effect that an unanticipated change in exchange rates will have on the consolidated financial reports of an MNCC. the change in the value of a foreign subsidiaries assets and liabilities denominated in a foreign currency, as a result of exchange rate change fluctuations, when viewed from the perspective of the parent firmD. all of the above2.The recognized methods for consolidating the financial reports of an MNC are: 3.How many methods of foreign currency translation have been used in recent years? (U.S. GAAP.) 4.Translation exposure, also frequently called accounting exposure, refers to the effect that an unanticipated change in exchange rates will have on the 5.When exchange rates change, the value of a foreign subsidiary's assets and liabilities denominated in a foreign currency change A. When they are viewed from the perspective of the subsidiary firm.B. When they are viewed from the perspective of the parent firm.C. But this is only of material concern if the parent firm is liquidating the subsidiary in a bankruptcy and is forced to realize the value of the assets and liabilities at the current exchange rate.D. None of the above6.The sensitivity of "realized" domestic currency values of the firm's contractual cash flows denominatedin foreign currency to unexpected changes in the exchange rate is:
7.The management of translation exposure is best described as

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