Translation exposure measures
A. changes in the value of outstanding financial obligations incurred prior to a change in exchange rates.
B. the potential for an increase or decrease in the parent company's net worth and reported net income caused by a change in exchange rates since the last consolidation of international operations.
C. an unexpected change in exchange rates impact on short run expected cash flows.
D. none of the above.
Answer:B
Translation exposure measures
A. changes in the value of outstanding financial obligations incurred prior to a change in exchange rates. B. the potential for an increase or decrease in the parent company's net worth and reported net income caused by a change in exchange rates since the last consolidation of international operations. C. an unexpected change in exchange rates impact on short run expected cash flows. D. none of the above.