1)

Which of the following statement is INCORRECT regarding translation of retained earnings?

a		To obtain the amount of translated retained earnings, one uses the retained earnings in foreign currency and applies the current exchange rate
b		To obtain the amount of translated retained earnings at the end of year, one would use net income from the translated income statement
c		To obtain the amount of translated retained earnings at the end of year, one applies historical exchange rate on declaration date on the dividends in foreign currency
d		Ending retained earnings from current year will become the beginning retained earnings for next year

2)

Which of the following statement is incorrect?

a		A foreign operation has a net liability balance sheet exposure would result in a positive translation adjustment if foreign currency depreciates.
b		A foreign operation has a net liability balance sheet exposure would result in a negative translation adjustment if foreign currency appreciates.
c		A foreign operation has a net asset balance sheet exposure would result in a positive translation adjustment if foreign currency depreciates.
d		A foreign operation has a net asset balance sheet exposure would result in a positive translation adjustment if foreign currency appreciates.