Foreign currencies and exchange rates influence the accounting and financial reporting processes of firms operating ______.

Question

Quizplus · Accepted Answer

Foreign currencies and exchange rates directly affect firms that operate internationally, as they must account for the fluctuations in exchange rates when conducting transactions in different currencies. This can impact the reported financial results of the firm, as it can lead to gains or losses due to changes in exchange rates. Firms operating locally or in Canada may also be impacted by exchange rates if they rely on imports or exports, but it is not as significant as for firms operating internationally. The home country is not specified, so it cannot be determined if exchange rates would have a major impact on accounting and financial reporting processes.

Foreign Currencies and Exchange Rates Influence the Accounting and Financial