Alternative Courses of Action That Can Be Implemented Based on How

question 22

Multiple Choice

Alternative courses of action that can be implemented based on how the future unfolds are called

• A) Single-use plans.
• B) Contingency plans.
• C) Standing plans.
• D) Corporate objectives.
• E) Shadow plans.

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Definitions:

Translation Adjustment

An accounting entry that reflects the impact of currency fluctuations in the financial statements of a company with operations in foreign currencies.

Foreign Currency

Currency used that is not the domestic currency of the country in which a transaction is being conducted.

Net Asset Balance Sheet Exposure

The risk that the value of a company's assets minus its liabilities, measured in its reporting currency, will decrease due to foreign exchange rate fluctuations.

Translation Adjustment

An adjustment made in the financial statements to account for exchange rate variations in translating operations of foreign subsidiaries into the parent company’s reporting currency.