Question #60
Reading: Reading 10 Multinational Operations
PDF File: Reading 10 Multinational Operations.pdf
Page: 35
Status: Unattempted
Correct Answer: A
Question
In a hyperinflationary economy, translation under the current rate method will most likely result in relatively:
Answer Choices:
A. high balance sheet values for long term assets
B. high translation gains
C. low balance sheet values for long term liabilities
Explanation
In a hyperinflationary economy, translation under the current rate method will most likely
result in relatively low balance sheet values for assets and liabilities. Translation losses will
also occur.