Vada, Inc Exports Computers to Australia Invoiced in U

question 77

Multiple Choice

Vada, Inc. exports computers to Australia invoiced in U.S. dollars. Its main competitor is located in Japan. Vada is subject to:

• A) economic exposure.
• B) transaction exposure.
• C) translation exposure.
• D) economic and transaction exposure.

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Definitions:

Journals

Official records where business transactions are entered before they are transferred to accounts in the general ledger.

Ratios

Quantitative relationships between two or more values, often used for financial analysis, to assess the performance, health, and prospects of a business.

Ledgers

Financial records that contain a detailed account of all the financial transactions of a business.

Accrual Basis

An accounting method where transactions are recorded when they are earned or incurred, regardless of when cash is exchanged.