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Basic Question 1 of 2
Accounting (translation) exposure relates to:
B. The risk that fluctuations in foreign exchange rates will cause a loss on the conversion of an asset into $US.
C. Cash gains (losses) arising from the conversion of non-$US denominated asset into $US.
A. The potential that a fraud has occurred and is undetected.
B. The risk that fluctuations in foreign exchange rates will cause a loss on the conversion of an asset into $US.
C. Cash gains (losses) arising from the conversion of non-$US denominated asset into $US.
User Contributed Comments 2
| User | Comment |
|---|---|
| davidt876 | you guys should really replace "$US" with "the company's reporting currency" |
| ashish100 | You should really be thankful to the US and acknowledge its greatness |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
describe foreign currency transaction exposure, including accounting for and disclosures about foreign currency transaction gains and losses;
analyze how changes in exchange rates affect the translated sales of the subsidiary and parent company;
CFA® 2025 Level II Curriculum, Volume 2, Module 12.