Depreciation of the euro relative to the U.S. dollar will cause a U.S.-based multinational firm's reported earnings (from the consolidated income statement) to ____. If a firm desired to protect against this possibility, it could stabilize its reported earnings by ____ euros forward in the foreign exchange market.
a. be reduced; purchasing
b. be reduced; selling
c. increase; selling
d. increase; purchasing
Ans: b. be reduced; selling
Business
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Indicate whether the statement is true or false
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A change in depreciation method is accounted for by retrospectively revising prior years' financial statements.
a. true b. false
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