With regard to foreign currency translation methods used by foreign MNCs,
A)foreign currency translation methods are generally only used by U.S. based MNCs since foreign firms have a built in hedge by being foreign.
B)are generally the same methods used by U.S.-based firms.
C)are exactly the same methods used by U.S.-based firms since GAAP is GAAP.
D)none of the above is true statements.

Question

Quizplus · Accepted Answer

Foreign currency translation methods may vary across different countries due to differences in accounting standards and regulations. Additionally, foreign MNCs may utilize various methods to manage their foreign exchange risks, such as hedging and local currency financing. Therefore, options A, B, and C are incorrect statements.

With Regard to Foreign Currency Translation Methods Used by Foreign