Which of the Following Questions Would Be LEAST Relevant to a Controller

question 24

Multiple Choice

Which of the following questions would be LEAST relevant to a controller as he or she develops a financial forecast for Aardvark?

• A) What are the future plans of the company?
• B) What is the current state of the local economy?
• C) What is the future state of the local economy likely to be?
• D) What subcontractors should the company use?
• E) What is the company's competition likely to do?

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Definitions:

Exchange Rate

The price of one country's currency in terms of another country's currency.

U.K. Bills

Short-term debt securities issued by the United Kingdom government, considered to be low-risk investments.

Foreign Exchange Risk

The possibility of incurring losses due to changes in currency exchange rates.

Translation Exposure

The potential for a company's financial statements to be affected by changes in exchange rates when foreign operations are translated into the parent company's currency.