While comparing the performance of all the affiliates of an American Multinational company, the CEO of the parent company producing electronic products, notices a translation loss in the Omani affiliate. Which among the below scenarios do you think is the most probable reason for that loss? O a. Exposed assets exceed exposed liabilities and USD depreciates. O b. The OMR depreciates. Oc The subsidiary's balance sheet shows a loss. O d. Exposed liabilities exceed exposed assets and USD appreciates.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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While comparing the performance of all the affiliates of an American Multinational company, the CEO of the parent company producing electronic
products, notices a translation loss in the Omani affiliate. Which among the below scenarios do you think is the most probable reason for that loss?
O a. Exposed assets exceed exposed liabilities and USD depreciates.
O b. The OMR depreciates.
OC. The subsidiary's balance sheet shows a loss.
d. Exposed liabilities exceed exposed assets and USD appreciates.
Transcribed Image Text:While comparing the performance of all the affiliates of an American Multinational company, the CEO of the parent company producing electronic products, notices a translation loss in the Omani affiliate. Which among the below scenarios do you think is the most probable reason for that loss? O a. Exposed assets exceed exposed liabilities and USD depreciates. O b. The OMR depreciates. OC. The subsidiary's balance sheet shows a loss. d. Exposed liabilities exceed exposed assets and USD appreciates.
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