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:

Justification

The reasoning or explanation behind a decision, action, or belief, demonstrating its validity.

Formal Complaint

An official report or allegation made by an individual or group regarding misconduct or dissatisfaction with a service or situation.

Claim Against A Company

A formal complaint or request for compensation made by an individual or entity due to dissatisfaction with a company's product or service.

Settlement Of A Dispute

Settlement of a dispute involves resolving a disagreement or conflict between parties through negotiation, mediation, or legal processes.