A US-Based Company Sells Merchandise on Account to a Company in in Mexico

question 63

Multiple Choice

A U.S.-based company sells merchandise on account to a company in Mexico. The Mexican company wants to pay for the merchandise in pesos. If the peso decreases in value relative to the dollar, the seller will record a ________. The peso ________ relative to the dollar.

• A)Foreign Currency Transaction Gain; weakens
• B)Foreign Currency Transaction Gain; strengthens
• C)Foreign Currency Transaction Loss; weakens
• D)Foreign Currency Transaction Loss; strengthens

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Definitions:

Inoculation Theory

A social psychological and communication theory that explains how attitudes and beliefs can be made more resistant to change by exposing them to counter-arguments.

Novel Arguments

Innovative or unique lines of reasoning or persuasion not previously presented or considered.

Persuasion

The act or process of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors through communication.

Space Exploration

The investigation of physical conditions in space and on stars, planets, and other celestial bodies through the use of satellites, space probes, or spacecraft with human crews.