Northland Corporation Recorded £1,000,000 in Accounts Receivable for Sales to Customers

question 29

Multiple Choice

Northland Corporation recorded £1,000,000 in Accounts Receivable for sales to customers in the United Kingdom and recorded Accounts Payable of 2,000,000 yuan for product purchased from China. If Northland recorded a foreign currency exchange loss on its receivables and a foreign currency gain on its payables,what must have happened to each currency?

• A)Yuan appreciated,Pound depreciated
• B)Yuan depreciated,Pound appreciated
• C)Yuan appreciated,Pound appreciated
• D)Yuan depreciated,Pound depreciated

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Definitions:

Groupthink

A process in which group members are influenced by cohesiveness and a dynamic leader to ignore external realities as they make decisions.

Prejudices

Preconceived opinions or judgments toward people, objects, or situations based on biases, without factual knowledge.

Stereotyping

Erroneous assumptions that all members of a group share the same traits or characteristics.

Attraction-Similarity Hypothesis

A theory suggesting that people are attracted to others who are similar to themselves in terms of attitudes, values, and interests.