Which of the Statements Below Is FALSE

question 110

Multiple Choice

Which of the statements below is FALSE?

• A)With an unexpected increase in exchange rates,the future cash flow of overseas operations can be less than anticipated,and thus the value of the business falls.
• B)A company has one more added risk exposure when dealing with foreign operations even if forward rates can be used to hedge a falling profit margin caused by unfavorable changes in exchange rates,
• C)Not all products and costs inflate at the same rate as the overall inflation rate of a country.
• D)Translation principles in many countries require the use of current exchange rates for certain equity,fixed asset,and inventory accounts,but historical exchange rates for current assets,current liabilities,and income accounts.

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Definitions:

Base Cases

Base Cases are the terminating scenarios in recursion that do not use recursion to produce an answer, avoiding infinite loops in the process.

Tail Recursive Method

A type of recursion where the recursive call is the final action performed by the function, potentially allowing for optimizations by the compiler.

Recursive Call

A programming technique where a function calls itself in order to solve a problem by breaking it down into smaller, more manageable sub-problems.