Exchange Gains and Losses on Accounts Receivable/payable That Are Denominated

question 34

Multiple Choice

Exchange gains and losses on accounts receivable/payable that are denominated in a foreign currency are _______.

• A)recognized in the periods in which exchange rates change.
• B)deferred and reported upon settlement.
• C)reported as adjustments to the transaction prices.
• D)reported as equity adjustments from translation.

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Definitions:

Monochronic

A cultural orientation that values doing one task at a time, emphasizing schedules, punctuality, and a linear approach to organizing time.

Geocentric

A viewpoint in international business that sees the world as a potential market with no inherent focus on any specific national market, promoting a global approach to marketing and production strategies.

Regional

Pertaining to or characteristic of a specific geographic area or district within a country, often highlighting local variations.

Polycentric

An approach in international business which assumes that host country cultures are different and businesses must adopt local strategies to succeed.