Which account listed below is classified as a contra-revenue account?

If a firm's subsidiary is using the local currency as the functional currency, which of the following is NOT a circumstance that could justify the use of a balance sheet hedge?

A) The foreign subsidiary is about to be liquidated, so that the value of its Cumulative Translation Adjustment (CTA) would be realized. B) The firm has debt covenants or bank agreements that state the firm's debt/equity ratio will be maintained within specific limits. C) The foreign subsidiary is operating is a hyperinflationary environment. D) All of the above are appropriate reasons to use a balance sheet hedge.

Which approach to formulating expatriate pay involves estimating the employee's expenses in the home country and the host country?

A) balance sheet B) mobility allowance C) performance pay D) hardship method