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Svetllana [295]
3 years ago
11

What type of international risk exposure measures the change in present value of a firm resulting from changes in future operati

ng cash flows caused by any unexpected change in exchange rates?a) transaction exposure.b) accounting exposure.c) operating exposure.d) translation exposure.
Business
1 answer:
Alex787 [66]3 years ago
4 0

Answer:

operating exposure

Explanation:

Based on the scenario being described within the question it can be said that the term being mentioned is known as operating exposure and deals with the company's operations over various months or years and the changes incurred due to unexpected changes in the exchange rate. The exchange rate is the price at which one currency is traded for another. Drastic changes in these rates can cause assets value to decline drastically.

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Changes in property, plant, and equipment related to the investing activities on the statement of cash flows.

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2 years ago
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<u>Explanation:</u>

Raw material purchased on credit from a vendor is a liability and it is shown under current liabilities in "accounts payable". Since raw material purchased on credit and payment is to be made after two months.

Payment due gives rise to liability. Now current liability is a company's short term obligations that are to be paid back within a year. Here the firm will have to make payment within two months to the vendor.

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