FTX,a US Electronics Firm,has Operations in Japan

question 45

Multiple Choice

FTX,a U.S. electronics firm,has operations in Japan. Currently,the yen is rising against the dollar. Which of the following will most likely occur?

• A) Translated earnings will be higher than before the strengthening of the exchange rate.
• B) Translated earnings will be lower than before the strengthening of the exchange rate.
• C) There will be no gain or loss on translating the financial statements into dollars.
• D) The gains or losses will not affect earnings per share and stock prices.

---

Definitions:

Pyroclastic Flows

Fast-moving currents of hot gas and volcanic materials that move away from a volcano during an explosive eruption.

Hot Lava

Molten rock that has erupted onto the Earth's surface, characterized by high temperatures.

Viscous Lava

Lava that has a thick, sticky consistency due to high silica content, leading to slow-flowing eruptions.

Landslide Blocks

Large segments of earth or rock that have moved down a slope due to gravity, often resulting from saturation by water, earthquakes, or volcanic activity.