Excellent Inc

question 19

Multiple Choice

Excellent Inc. is located in the U.S., but it has subsidiaries in Japan. When the yen depreciates relative to the U.S. dollar, what is the direction of the translation adjustment to consolidate Excellent's financial statements?

• A) When there is net asset exposure, the translation adjustment will be positive.
• B) There will be no adjustment necessary unless the difference is realized.
• C) When there is net liability exposure, the translation adjustment will be positive.
• D) The direction of the adjustment is indeterminate.

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Definitions:

Types

Distinctive categories or classifications characterized by specific traits or forms within a broader group.

Acetaminophen

A medication used to reduce fever and relieve pain; it's known for its analgesic and antipyretic properties without significant anti-inflammatory effects.

Liver Damage

Harm to the liver that disrupts its function, potentially caused by substances like alcohol, drugs, or due to disease processes like hepatitis.

Alcohol

An organic compound often referred to beverages containing ethanol, which can have psychoactive and physiological effects.