Câu 1
A balance sheet hedge requires that the amount of exposed foreign currency assets and liabilities
Đáp án và lời giải
Đáp án: D
A balance sheet hedge requires that the amount of exposed foreign currency assets and liabilities
Đáp án: D
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
Đáp án: C
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?
Đáp án: D
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.
Đáp án: B
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
Đáp án: A
It is possible that efforts to decrease translation exposure may result in an increase in transaction exposure.
Đáp án: A
………. gains and losses are "realized" whereas ……… gains and losses are only "paper."
Đáp án: B
The dominant currency used by a subsidiary in its day-to-day operations is known as its ……… currency.
Đáp án: C
Translation gains and losses can be quite different from operating gains and losses
Đáp án: D
A balance sheet hedge is the main technique for managing ……… .
Đáp án: C
Management can easily offset both translation and transaction exposure through
Đáp án: D
U.S. multinational firms must use ……… as their functional currency.
Đáp án: A
If the European subsidiary of a U.S. firm has net exposed assets of euro 500,000, and the euro drops in value from 1.30/euro the U.S. firm has a translation…….. .
Đáp án: B
If the European subsidiary of a U.S. firm has net exposed assets of euro 500,000, and the euro increases in value from 1.35/euro the U.S. firm has a translation ………. .
Đáp án: A
Under the current rate method, translation gains of losses are reported in an equity reserve account called ………. .
Đáp án: C
Under the current rate method, when management anticipates appreciation of a foreign currency it A. may move funds from cash to savings.
Đáp án: C
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………. .
Đáp án: B
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……….. .
Đáp án: A
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?
Đáp án: B
Gains from forward contracts to hedge translation exposure are taxable whereas losses from hedging translation exposure are not.
Đáp án: A
Gains from forward contracts to hedge translation exposure are not taxable whereas losses from hedging translation exposure are.
Đáp án: B
Multinational enterprises always completely hedge translation exposure.
Đáp án: B
When using FASB-52, translated gains and losses due to changes in foreign currency values are usually reported as………… .
Đáp án: C
Which of the following firms would NOT bear risk caused by translation exposure?
Đáp án: D
If a European subsidiary of a U.S. firm has net exposed liabilities of euro 500,000, and the euro drops in value from 1.30/euro then the U.S. firm has a translation……….
Đáp án: A
If a European subsidiary of a U.S. firm has net exposed liabilities of euro 500,000, and the euro increases in value from 1.35/euro then the U.S. firm has a translation ……….. .
Đáp án: B
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
|
Assets |
Liabilities and Equity |
||
|
Cash |
C$10,000 |
Current Liabilities |
C$6,000 |
|
Inventory |
30,000 |
Long – Term Debt |
28,000 |
|
Fixed Assets |
160,000 |
Equity |
166,000 |
|
Total Assets |
C$200,000 |
Total Liabilities and Equity |
C$200,000 |
Đáp án: D