Under the current rate method of translating foreign currency financial statements, what is the amount of the balance sheet exposure?
A. It is equal to the amount of assets recorded by the subsidiary.
B. It is equal to the amount of liabilities recorded by the subsidiary.
C. It is equal to total assets minus total liabilities.
D. It is equal to total assets plus total liabilities.
Answer:C
Under the current rate method of translating foreign currency financial statements, what is the amount of the balance sheet exposure?
A. It is equal to the amount of assets recorded by the subsidiary. B. It is equal to the amount of liabilities recorded by the subsidiary. C. It is equal to total assets minus total liabilities. D. It is equal to total assets plus total liabilities.