A French Company Sells Goods to a Foreign Customer Whose

question 72

Multiple Choice

A French company sells goods to a foreign customer whose currency is depreciating against the euro. Which of the following will the company most likely experience when completing the sale?

• A) The company will receive fewer euros if the sales price was expressed in the buyer's currency.
• B) The company will receive more euros if the sales price was expressed in the buyer's currency.
• C) The company will receive fewer euros if the sales price was expressed in euros originally.
• D) The company will receive more euros if the sales price was expressed in euros originally.

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Definitions:

Disbursement Float

The time gap between the writing of a check and the reduction of the payer's bank account balance.

Short-term Investments

Assets that can easily be converted into cash, typically within 5 years or less.

Ethically Questionable

Pertains to actions or decisions that raise concerns regarding their morality or adherence to accepted ethical standards.

Processing Delay

The time taken between the initiation and completion of a process, often referring to the lag in transaction or operational activities.