What Is the Primary Difference Between Transaction Exposure and Accounting

question 8

Multiple Choice

What is the primary difference between transaction exposure and accounting exposure?

• A) Transaction exposure results from changes in currency exchange rates, whereas accounting exposure is the result of changes in accounting method.
• B) Transaction exposure results in changes in cash flow, whereas accounting exposure does not necessarily result in changes in cash flow.
• C) Transaction exposure must be hedged, but accounting exposure does not need to be hedged.
• D) Transaction exposure affects only monetary assets and liabilities, whereas accounting exposure affects all assets and liabilities.

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Definitions:

Management Development

A systematic process that improves the overall capability of managers through training and development to enhance their performance and prepare them for future roles.

Observers

Individuals or entities that watch or monitor events, behaviors, or phenomena without directly influencing the outcomes.

Training Design

The process of structuring and organizing a program or course to effectively impart knowledge or skills.

Learning Objectives

Specific goals that outline what learners should know, understand, or be able to do by the end of an educational activity.