In Order to Identify the Foreign Exchange Component of a Transaction

question 37

Multiple Choice

In order to identify the foreign exchange component of a transaction, a company must establish the currency in which its books and records should be maintained. This is the ___________________________

• A)domestic currency.
• B)currency of the primary economic environment in which a company operates.
• C)foreign currency.
• D)translation currency.

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Definitions:

Tongue

A muscular organ in the mouth of most vertebrates that manipulates food for chewing and swallowing and is also used for taste and phonetic articulation.

Concrete Operational

A stage in Piaget's theory of cognitive development, typically occurring between ages 7 and 12, where children develop logical thinking but still struggle with abstract concepts.

Odd Number

An integer that is not divisible by 2, characterized by having a remainder of 1 when divided by 2.

Even Number

An even number is an integer that can be exactly divided by two, without leaving a remainder.