If a Canadian Corporation Reports Its Financial Results in Canadian

question 65

True/False

If a Canadian corporation reports its financial results in Canadian dollars and most of its business is conducted in the U.S., an increase in value in the Canadian dollar (versus the U.S dollar) would result in an exchange gain.

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Definitions:

Cash Flows

Cash flows refer to the total amount of money being transferred into and out of a business, especially as affecting liquidity.

Financing Activities

Transactions and events where cash is raised or repaid to investors and creditors, such as issuing shares or borrowing loans.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

Treasury Stock

Shares that were issued by a company and then repurchased, reducing the amount of outstanding stock on the open market.