Under FASB 52,when a Net Translation Exposure Exists

question 3

Multiple Choice

Under FASB 52,when a net translation exposure exists,

• A)a derivatives hedge is necessary to bring balance to the consolidated balance sheet after an exchange rate change.
• B)a money market hedge is necessary to bring balance to the consolidated balance sheet after an exchange rate change.
• C)a cumulative translation adjustment account is necessary to bring balance to the consolidated balance sheet after an exchange rate change.
• D)none of the options

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Definitions:

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