vincent9125

Temporal Method means net monetary asset is exposed to currency risk.
B. using cash to payoff A/P  => Monetary Asset and Monetary Liability both decreased for the same amount, as a result. No effect on the exposure to currency risk
C. is similar to B
A. Borrowing to reduce Equity, Monetary stays the same while monetary liability increased. Taking depreciation peso into account, the firm is likely to have a gain an currency exchange.