The Combined Effect of an Exchange-Rate Change on the Financial

question 88

True/False

The combined effect of an exchange-rate change on the financial statements of a foreign subsidiary is neither a gain nor a loss because of accounting rules.

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Definitions:

Social Norm

Unwritten rules or expectations for behavior in a given group or society.

Attitude

A settled way of thinking or feeling about something, typically reflected in a person's behavior.

Attribution

The process by which individuals explain the causes of behavior and events.

Familiarity Effect

A psychological phenomenon where people tend to develop a preference for things merely because they are familiar with them.