What is the risk of an apparent gain or loss arising from the restatement of financial statements prepared in one currency to another currency called?
A)Transaction exposure
B)Accounting exposure
C)Economic exposure
D)Restatement exposure

Question

Quizplus · Accepted Answer

The risk of an apparent gain or loss arising from the restatement of financial statements prepared in one currency to another currency is called accounting exposure. Accounting exposure arises due to changes in exchange rates between the time the transactions are recorded and the time the financial statements are prepared. This can affect the reported earnings and financial position of the company, leading to apparent gains or losses.

What Is the Risk of an Apparent Gain or Loss