Which of the following are true?
A)Some items that are a source of transaction exposure are also a source of translation exposure.
B)Some items that are a source of transaction exposure are NOT also a source of translation exposure.
C)Both a and b
D)None of the above

Question

Quizplus · Accepted Answer

Transaction exposure and translation exposure can overlap, as some items like foreign currency receivables/payables can affect both. However, not all transaction exposures lead to translation exposure, as translation exposure specifically relates to the conversion of financial statements.

Which of the Following Are True