It Is Possible That Efforts to Decrease Translation Exposure May

question 54

True/False

It is possible that efforts to decrease translation exposure may result in an increase in transaction exposure.

---

Definitions:

Direct Method

A way of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct material and labor costs.

Liabilities

Amounts owed to creditors in the form of debts and other obligations.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives.