The Disadvantage of Accounts Receivable Financing Is Its Negative Impact

question 55

True/False

The disadvantage of accounts receivable financing is its negative impact on cash flow.

Calculate the foreign exchange gain or loss on transactions.

Understand the concept of fair value and cash flow hedges in accounting.

Recognize the role of present value in accounting for foreign currency transactions.

Differentiate between the accounting treatments of foreign currency transactions and hedges.

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Definitions:

Income

Funds regularly amassed from labor or capital invested.

APS

The abbreviation for "Aggregate Planning Strategy," a process in operations management to balance production and demand over a medium-term horizon; or it could refer to "Automatic Payment System," depending on context.

Income

The financial gain earned by an individual or business, typically measured on an annual basis, coming from work, investments, or other sources.

APC

Average Propensity to Consume, which is the fraction of income that a person or economy spends rather than saving.