Which of the Following Approaches Is Used in the United

question 14

Multiple Choice

Which of the following approaches is used in the United States in accounting for foreign currency transactions?

• A) One-transaction perspective; defer foreign exchange gains and losses.
• B) Two-transaction perspective; accrue foreign exchange gains and losses.
• C) Three-transaction perspective; defer foreign exchange gains and losses.
• D) One-transaction perspective; accrue foreign exchange gains and losses.
• E) Two-transaction perspective; defer foreign exchange gains and losses.

---

Definitions:

Vertical Transfer

The application or generalization of skills, knowledge, or attitudes acquired in a learning situation to a different context that requires higher-order understanding or performance.

Horizontal Transfer

The movement or sharing of skills, knowledge, or technologies across different departments or units within the same organizational level.

Organizational Performance

A measure of how well an organization achieves its goals and objectives, often evaluated through financial, operational, and strategic metrics.

Organizational Effectiveness

Measures how successfully an organization achieves its mission and objectives through efficient resource utilization.