The Faster Punishment Is Applied, and the More Closely It

question 91

True/False

The faster punishment is applied, and the more closely it is linked to the crime, the more likely it will serve as a deterrent.

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Definitions:

Foreign Exchange Risk

The risk that an entity’s financial position, financial performance, or cash flows will be affected by fluctuations in exchange rates.

Recognised Assets

Assets that have been formally acknowledged and recorded on the balance sheet due to their probable future economic benefits.

Unrecognised Firm Commitments

Obligations or agreements that a company has committed to, but are not yet recorded on the balance sheet because they do not meet the recognition criteria.

Hedge Effectiveness

A measure of the degree to which a hedge transaction reduces the risk of the underlying exposure it was intended to hedge.