With Regard to Foreign Currency Translation Methods Used by Foreign

question 5

Multiple Choice

With regard to foreign currency translation methods used by foreign MNCs,

• A)foreign currency translation methods are generally only used by U.S.-based MNCs since foreign firms have a built in hedge by being foreign.
• B)are generally the same methods used by U.S.-based firms.
• C)are exactly the same methods used by U.S.-based firms since GAAP is GAAP.
• D)none of the above are true statements.

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Definitions:

Jointly Exhaustive

A set of options or propositions is considered jointly exhaustive when it covers all possible cases or outcomes, leaving no scenario unaccounted for.

Mutually Exclusive

Two events or propositions that cannot both be true or occur at the same time.

Jointly Exhaustive

A set of options or categories is collectively comprehensive, covering all possible scenarios or outcomes.

Consistent Principle

A rule or concept that does not contradict itself and remains uniform across various situations or applications.