Under FASB 52, the temporal method requires that:A.translation gains and losses are included in the reported net income.В.translation gains and losses are only included in stockholder's equity.C.translation gains and losses should not be considered.D.none of these,QUESTION 13A CFO should be least worried aboutA. transaction exposure.B. translation exposure.C. economic exposure.D. none of the optionsQUESTION 14The most effective way to hedge translation exposure is:A. to buy forward contract.B. to buy call option contract.C. to use balance sheet hedge.D. to use regression method.

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Under FASB 52, the temporal method requires that: A. translation gains and losses are included in the reported net income. B. translation gains and losses are only included in stockholder's equity. C. translation gains and losses should not be considered. D. none of these.

Under FASB 52, the temporal method requires that: A. translation gains and losses are included in the reported net income. B. translation gains and losses are only included in stockholder's equity. C. translation gains and losses should not be considered. D. none of these.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 5MC

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Question

Under FASB 52, the temporal method requires that:
A.
translation gains and losses are included in the reported net income.
В.
translation gains and losses are only included in stockholder's equity.
C.
translation gains and losses should not be considered.
D.
none of these,
QUESTION 13
A CFO should be least worried about
A. transaction exposure.
B. translation exposure.
C. economic exposure.
D. none of the options
QUESTION 14
The most effective way to hedge translation exposure is:
A. to buy forward contract.
B. to buy call option contract.
C. to use balance sheet hedge.
D. to use regression method.

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