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NEW QUESTION: 1
Gary Smith, CFA, has been hired lo analyze a specialty tool and machinery manufacturer, Whitmore Corporation (WMC). WMC is a leading producer of specialty machinery in the United States. At the end of
2006, WMC purchased York Tool Company (YTC), an Australian firm in a similar line of business. YTC has partially integrated its marketing functions within WMC but still maintains control of its operations and secures its own financing. Following is a summary of the income statement and balance sheet for YTC (in millions of Australian dollars - AUD) for the past three years as well as exchange rate data over the same period.

Smith has discovered that WMC has a small subsidiary in Ukraine. The Subsidiary follows IAS accounting rules and uses FIFO inventory accounting. The Ukrainian subsidiary was acquired ten years ago and has been fully integrated into WMC's operations. WMC obtains funding for the subsidiary whenever the company finds profitable investments within Ukraine or surrounding countries. According to forecasts from economists, the Ukrainian currency is expected to depreciate relative to the U.S. dollar over the next few years. Local currency prices are forecasted to remain stable, however.
One of the managers at WMC asks Smith to analyze a third subsidiary located in India. The manager has explained that real interest rates in India over the last three years have been 2.00%, 2.50%, and 3.00%, respectively, while nominal interest rates have been 34.64%, 29.15%, and 25.66%, respectively. Smith requests more time to analyze the Indian subsidiary.
If WMC uses the temporal method, YTC's net monetary liabilities leave WMC exposed to loss in the event of:
A. currency (AUD) appreciation.
B. currency (AUD) depreciation.
C. either currency depreciation or currency appreciation.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Under che temporal method, the nonmonetary assets and liabilities are remeasured at historical rates.
Thus, only the monetary assets and liabilities are exposed to changing exchange rates. Therefore, under the temporal method, exposure is defined as the subsidiary's net monetary asset or net monetary liability position. A firm has net monetary assets if its monetary assets exceed its monetary liabilities. If the monetary liabilities exceed the monetary assets, the firm has a net monetary liability exposure.
Since very few assets are considered to be monetary (mainly cash and receivables), most firms have net monetary liability exposures. If the parent has a net monetary liability exposure when the foreign currency (AUD) is appreciating, the result is a loss. Conversely, a net monetary liability exposure coupled with a depreciating currency will result in a gain. (Study Session 6, LOS 23-c)

NEW QUESTION: 2
You have a SQL Server Integration Services (SSIS) package that runs on a server named SQL1 and connects to a SQL Server database on a server named SQL2. Both servers are members of an Active Directory domain named Fabrikam.
You schedule the package to run by using a SQL Server Agent job.
The package fails and generates the following error message: "Non-SysAdmins have been denied permission to run DTS Execution job steps without a proxy account." You discover that the package is configured to authenticate by using Windows authentication, and that the SQL Server Agent on SQL1 uses NT Service\SQLSERVERAGENT as a service account You verify that other jobs run on the server without causing errors.
You create a user account named FABRIKAM\JobProcess1 and you provide all the required access to the tables on SQL2.
You need to ensure that the SQL Server Agent job runs the package successfully.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.

Answer:
Explanation:

NEW QUESTION: 3
Which tool would a network administrator use to disable the HP Network Optimizer SDN Application?
A. Application Manager
B. Keystone
C. Upstart
D. Node Manager
Answer: A

NEW QUESTION: 4
In which approach of comparative negligence, the plaintiff may collect something for injuries even if he or she was primarily responsible for the injuries?
A. Pure approach
B. 50/50 rule
C. None of the above
D. 51 percent rule
Answer: A