Chapter 10 Quiz Flashcards
Assets translated at the current exchange rate when the foreign currency has appreciated generate ______
A positive (credit) translation adjustment
Liabilities translated at the current exchange rate when the foreign currency has appreciated generate _____
A negative (debit) translation adjustment
Balance sheet items translated translated at historical exchange rates ____________________________
are not exposed to translation adjustment
Assets translated at the current exchange rate are higher in amount than liabilities translated at the current exchange rate is called?
Net Asset Balance Sheet Exposure
Liabilities translated at the current exchange rate are higher than assets translated at the current exchange rate is called?
Net Liability Balance Sheet Exposure
Current Rate Method: Net Asset Exposure
Total Assets > Total Liabilities
Current Rate Method: Assets & Liabilities
Current Exchange Rate
Temporal Method: Deferred Income
Historical Exchange Rate
Current Rate Method: Stockholders’ Equity
Historical Exchange Rate
Current Rate Method: Income Statement
Average Exchange Rate
Temporal Method: Cash/Receivables, Marketable Securities, Inventory at Market
Current Exchange Rate
Temporal Method: Inventory at Cost, Prepaid Expenses, Property/Plant/Equip, Intangible Assets
Historical Exchange Rate
Temporal Method: Current/Long Term Liabilities
Current Exchange Rate
Temporal Method: Stockholders’ Equity
Historical Exchange Rate
Temporal Method: Revenues & Expenses
Average Exchange Rate
