Which of the Statements Below Is FALSE

question 110

Multiple Choice

Which of the statements below is FALSE?

• A)With an unexpected increase in exchange rates,the future cash flow of overseas operations can be less than anticipated,and thus the value of the business falls.
• B)A company has one more added risk exposure when dealing with foreign operations even if forward rates can be used to hedge a falling profit margin caused by unfavorable changes in exchange rates,
• C)Not all products and costs inflate at the same rate as the overall inflation rate of a country.
• D)Translation principles in many countries require the use of current exchange rates for certain equity,fixed asset,and inventory accounts,but historical exchange rates for current assets,current liabilities,and income accounts.

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Definitions:

Memorize Check

A feature in financial software that allows users to save the details of a written check for future reference or replication.

Automate

The use of technology to perform tasks with minimal human intervention.

Overdraw

Occurs when an account's balance goes below zero because more money has been withdrawn from the account than was available.

Sales Receipt

A document that provides evidence of a transaction in which goods or services are purchased and paid for in full at the time of the sale.