The Type of Exposure That Arises from the Need,for Purposes

question 38

Multiple Choice

The type of exposure that arises from the need,for purposes of reporting and consolidating,to convert the financial statements of foreign operations from the local currencies involved to the home currency is known as

• A)translation exposure
• B)accounting exposure
• C)transaction exposure
• D)both a and b

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Definitions:

Persian Gulf

A strategic water body located between Iran and the Arabian Peninsula, significant for its oil reserves and geopolitical importance.

Saudi Arabian Oil

Refers to the extensive petroleum reserves located in Saudi Arabia, which play a crucial role in the global oil industry and the country's economy.

Kuwait

A country located in the Middle East, at the head of the Persian Gulf, known for its significant petroleum reserves and strategic regional significance.

1980 Presidential

Refers to the presidential election held in 1980, in which Republican Ronald Reagan defeated incumbent Democrat Jimmy Carter, marking a significant political shift in the United States.