Impact of Currency Translation on Multinational Financial Statements

During its annual reporting cycle, a multinational corporation with a significant presence in both the U.S. and Europe had to adjust its financial statements due to the impact of exchange rate fluctuations on its revenues and expenses. The corporation operates primarily in euros but reports its consolidated financial statements in U.S. dollars. The company's management is concerned about how the translation of its euro-denominated financial statements will affect key metrics such as net income and total assets.

Which of the following statements correctly identifies the impact of currency translation on the financial statements reported by the multinational corporation?