________ exposure is the potential for accounting-derived changes in owner's equity to occur because of the need to translate foreign currency financial statements into a single reporting currency.
A) Transaction
B) Operating
C) Economic
D) Accounting (aka translation)

Question

Quizplus · Accepted Answer

Accounting exposure, also known as translation exposure, arises due to the need to convert financial statements denominated in foreign currencies into the reporting currency of the parent company. This can lead to fluctuations in the owner's equity due to changes in exchange rates, which can impact the consolidated financial statements.

________ Exposure Is the Potential for Accounting-Derived Changes in Owner's