200+ câu trắc nghiệm tổng hợp Tài chính công ty đa quốc gia có đáp án - Phần 2

A balance sheet hedge requires that the amount of exposed foreign currency assets and liabilities

If a firm's balance sheet has an equal amount of exposed foreign currency assets and liabilities and the firm translates by the temporal method, then

If a firm's subsidiary is using the local currency as the functional currency, which of the following is NOT a circumstance that could justify the use of a balance sheet hedge?

If the parent firm and all subsidiaries denominate all exposed assets and liabilities in the parent's reporting currency this will …….. exposure but each subsidiary would have ………. exposure.

A Canadian subsidiary of a U.S. parent firm is instructed to bill an export to the parent in U.S. dollars. The Canadian subsidiary records the accounts receivable in Canadian dollars and notes a profit on the sale of goods. Later, when the U.S. parent pays the subsidiary the contracted U.S. dollar amount, the Canadian dollar has appreciated 10% against the U.S. dollar. In this example, the Canadian subsidiary will record a

It is possible that efforts to decrease translation exposure may result in an increase in transaction exposure.

………. gains and losses are "realized" whereas ……… gains and losses are only "paper."

The dominant currency used by a subsidiary in its day-to-day operations is known as its ……… currency.

Translation gains and losses can be quite different from operating gains and losses

A balance sheet hedge is the main technique for managing ……… .

Management can easily offset both translation and transaction exposure through

U.S. multinational firms must use ……… as their functional currency.

If the European subsidiary of a U.S. firm has net exposed assets of euro 500,000, and the euro drops in value from $1.40/euro to $1.30/euro the U.S. firm has a translation…….. .

If the European subsidiary of a U.S. firm has net exposed assets of euro 500,000, and the euro increases in value from $1.30/euro to $1.35/euro the U.S. firm has a translation ………. .

Under the current rate method, translation gains of losses are reported in an equity reserve account called ………. .

Under the current rate method, when management anticipates appreciation of a foreign currency it A. may move funds from cash to savings.

If the British subsidiary of a European firm has net exposed assets of £250,000, and the pound increases in value from euro 1.40/£ to euro 1.45/£, the European firm has a translation………. .

If the British subsidiary of a European firm has net exposed assets of £250,000, and the pound drops in value from euro 1.40/£ to euro 1.30/£, the European firm has a translation……….. .

As required by FASB-52, which exchange rate is required to be used to translate assets and liabilities of a foreign entity from its functional currency to the reporting currency?

Gains from forward contracts to hedge translation exposure are taxable whereas losses from hedging translation exposure are not.

Gains from forward contracts to hedge translation exposure are not taxable whereas losses from hedging translation exposure are.

Multinational enterprises always completely hedge translation exposure.

When using FASB-52, translated gains and losses due to changes in foreign currency values are usually reported as………… .

Which of the following firms would NOT bear risk caused by translation exposure?

If a European subsidiary of a U.S. firm has net exposed liabilities of euro 500,000, and the euro drops in value from $1.40/euro to $1.30/euro then the U.S. firm has a translation……….

If a European subsidiary of a U.S. firm has net exposed liabilities of euro 500,000, and the euro increases in value from $1.30/euro to $1.35/euro then the U.S. firm has a translation ……….. .

Using the table below, estimate the net exposure for Souris River Manufacturing of its’ wholling-owned Canadian subsidiary,

Souris River manufacturing (Canada) Balance Sheet December 31 200X