When Predicting a Company's Future Income,financial Analysts Exclude

question 106

Multiple Choice

When predicting a company's future income,financial analysts exclude:

• A)gains or losses from discontinued operations.
• B)extraordinary gains or losses.
• C)accounting changes in accounting principle.
• D)all of the above.

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Definitions:

Exchange Rate

The rate at which one currency can be exchanged for another, usually used in international trade and finance.

Counterparty

Second borrower in currency swap. Counterparty borrows funds in currency desired by principal.

Currency Swap

A Currency Swap is a financial derivative that involves the exchange of principal and interest payments in one currency for those in another, commonly used by companies to manage foreign exchange risk.

Exchange Rate Risk

The potential for loss due to fluctuations in the foreign exchange rates affecting investments or transactions.