Q8. Which statements best define the impact of exchange rate changes on financial statements? Flow effects refer to the impact of: A) changes in the exchange rate on income statement items such as revenue. Holding effects are the impact of changes in the exchange rate on assets and liabilities on the balance sheet, such as cash balances. B) exchange rate changes on variables such as revenues. Holding effects refer to the impact of exchange rate changes on stock variables such as dividends. C) exchange rate changes on stock variables such as cash. Holding effects refer to the impact of exchange rate changes on variables such as revenue.
Q9. Flow effects refer to the impact of changes in exchange rates on which of the following variables? A) Cash balances. B) Accounts payable. C) Revenue.
Q10. A Canadian firm owns a foreign subsidiary in the U.S. In 2002, sales were USD1,000,000 and the USD/CAD exchange rate was 0.6329. In 2003, sales were also USD1,000,000 but the exchange rate was 0.7484. What is the impact of the change in the value of the CAD on the parent company’s translated sales? Sales will: A) increase by 18%. B) decrease by 18%. C) decline by 15%.
Q11. A U.S. firm owns a foreign subsidiary in France. In 2002, sales were EUR 1,000,000 and the USD/EUR exchange rate was 1.0620. In 2003, sales were EUR 1,100,000 and the exchange rate was 1.1417. What is the impact of the change in the value of the USD on the parent company’s translated sales? Sales will: A) increase by 7.5%. B) decrease by 7.5%. C) increase by 18.25%.
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发表于 2009-1-17 14:52
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