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ECO 410 Week 7 Quiz – Strayer Click on the Link Below to Purchase A+ Graded Course Material http://hwgala.com/ECO-410-Week-7-Quiz-Strayer-374.htm Quiz 6 Chapter 11 and 12 Translation Exposure 11.1 Overview of Translation Multiple Choice 1) Translation exposure may also be called ________ exposure. A) transaction B) operating C) accounting D) currency 2) ________ exposure is the potential for an increase or decrease in the parent company's net worth and reported net income caused by a change in exchange rates since the last transaction. A) Transaction B) Operating C) Currency D) Translation 3) Translation exposure measures: A) changes in the value of outstanding financial obligations incurred prior to a change in exchange rates.

ECO/410 Week 7 Quiz

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ECO 410 Week 7 Quiz StrayerClick on the Link Below to Purchase ! "ra#e# Course $aterialhttp://hwgala.com/ECO-410-Week-7-Quiz-Strayer-74.htmQuiz % Cha&ter 11 an# 1'(ranslation E)&osure11.1 O"er"iew o# $ra%&latio% $ulti&le Choice1' $ra%&latio% e(po&ure may al&o )e calle* ++++++++ e(po&ure.,' tra%&actio%-' operati%gC' accou%ti%g.' curre%cy /' ++++++++ e(po&ure i& the pote%tial #or a% i%crea&e or *ecrea&e i% the pare%t compa%y0& %et worth a%* reporte* %et i%come cau&e* )y a cha%ge i% e(cha%ge rate& &i%ce the la&t tra%&actio%.,' $ra%&actio%-' Operati%gC' Curre%cy.' $ra%&latio% ' $ra%&latio% e(po&ure mea&ure&:,' cha%ge& i% the "alue o# out&ta%*i%g #i%a%cial o)ligatio%& i%curre* prior to a cha%gei% e(cha%ge rate&.-' the pote%tial #or a% i%crea&e or *ecrea&e i% the pare%t compa%y0& %et worth a%* reporte* %et i%come cau&e* )y a cha%ge i% e(cha%ge rate& &i%ce the la&t co%&oli*atio% o# i%ter%atio%al operatio%&.C' a% u%e(pecte* cha%ge i% e(cha%ge rate& impact o% &hort ru% e(pecte* ca&h #low&..' %o%e o# the a)o"e 4' ,ccor*i%g to your author&1 the mai% purpo&e o# tra%&latio% i&:,' to prepare co%&oli*ate* #i%a%cial &tateme%t&.-' to help ma%ageme%t a&&e&& the per#orma%ce o# #oreig% &u)&i*iarie&.C' to act a& a% i%terpreter #or ma%ager& without #oreig% la%guage &kill&..' %o%e o# the a)o"e 2' 3i&torical e(cha%ge rate& may )e u&e* #or ++++++++1 while curre%t e(cha%ge rate& may )e u&e* #or ++++++++.,' #i(e* a&&et& a%* curre%t a&&et&4 i%come a%* e(pe%&e item&-' e5uity accou%t& a%* #i(e* a&&et&4 curre%t a&&et& a%* lia)ilitie&C' curre%t a&&et& a%* lia)ilitie&4 e5uity accou%t& a%* #i(e* a&&et&.' e5uity accou%t& a%* curre%t lia)ilitie&4 curre%t a&&et& a%* #i(e* a&&et& 6' 7# a% im)ala%ce re&ult& #rom the accou%ti%g metho* u&e* #or tra%&latio%1 the im)ala%ce i& take% either to ++++++++ or ++++++++.,' the )a%k4 the po&t o##ice-' *epreciatio%4 the market #or #oreig% e(cha%ge &wap&C' curre%t i%come4 e5uity re&er"e&.' curre%t lia)ilitie&4 e5uity re&er"e& 7' 8e%erally &peaki%g1 tra%&latio% metho*& )y cou%try *e#i%e the tra%&latio% proce&& a& a #u%ctio% o# what two #actor&9,' &ize4 locatio%-' a #irm0& #u%ctio%al curre%cy4 locatio%C' locatio%4 #oreig% &u)&i*iary i%*epe%*e%ce.' #oreig% &u)&i*iary i%*epe%*e%ce4 a #irm0& #u%ctio%al curre%cy :' ,/,% ++++++++ &u)&i*iary i& o%e i% which the #irm operate& a& a% e(te%&io% o# the pare%t compa%y with ca&h #low& highly i%terrelate* with the pare%t.,' &el#-&u&tai%i%g #oreig%-' i%tegrate* #oreig% e%tityC' #oreig%.' %o%e o# the a)o"e ;' Co%&i*er two *i##ere%t #oreig% &u)&i*iarie& o# 8eorgia-