Question

The difference between accounting exposure and translation exposure is that:______

a. translation is about going from one language to another, accounting is just about the numbers.
b. accounting exposure and translation exposure are the same thing.
c. hedging one always involves increasing the other.
d. hedging one might involve increasing the other.

Answer 1

B.)accounting exposure and translation exposure are the same thing.

Step-by-step explanation:

Accounting Exposure can also be regarded as also translation exposure, it take care of all accounting-derived changes that could arise in owner's equity. This Translation exposure do take place when a firm is a dominant of part of her equity or liabilities in a foreign currency.