The type of exposure that arises from the need,for purposes of reporting and consolidating,to convert the financial statements of foreign operations from the local currencies involved to the home currency is known as
A)translation exposure
B)accounting exposure
C)transaction exposure
D)both a and b

Question

Quizplus · Accepted Answer

Translation exposure and accounting exposure are terms that refer to the same concept, which involves the risk that a company's financial statements will be affected when foreign operation results are converted into the home currency for reporting purposes.

The Type of Exposure That Arises from the Need,for Purposes