A US Parent Firm, as Result of Its Business Activities in in Germany

question 47

Multiple Choice

A U.S. parent firm, as result of its business activities in Germany, has a net exposure of €1,000,000. The consolidated reports were prepared at the year-end for the last two successive years. If the exchange rates on these reporting dates changed from $1.00 = €1.10 to $1.00 = €1.00, then the translation exposure report will indicate a "reporting currency imbalance" of

• A)$90,910.
• B)$0.
• C)-$90,910.
• D)none of the above

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Definitions:

Called Function

A function that is invoked or executed by another function or piece of code, typically passing control from the caller to the called function.

Calling Function

The process where one function invokes or makes use of another function within a program.

Function Prototype

A declaration of a function that specifies the function's name, return type, and parameters, used to inform the compiler about a function ahead of its definition.

Function Declarator

The syntax in programming that specifies the name, return type, and parameters of a function.