Losses from ________ exposure generally reduce taxable income in the year they are realized. ________ exposure losses are not cash losses and therefore, are not tax deductible.
A) transaction; Operating
B) accounting; Operating
C) accounting; Transaction
D) transaction; Translation

Question

Quizplus · Accepted Answer

Losses from transaction exposure generally reduce taxable income in the year they are realized. On the other hand, losses from translation exposure are not cash losses and therefore, are not tax-deductible. Accounting and operating exposures do not result in losses that are tax-deductible.

Losses from ________ Exposure Generally Reduce Taxable Income in the Year