A Foreign-Currency Transaction Gain or Loss on a Credit Purchase

question 105

Multiple Choice

A foreign-currency transaction gain or loss on a credit purchase is calculated as the difference between the exchange rates on the date:

• A)the merchandise is ordered and the date it arrives.
• B)the merchandise is purchased and the date it is sold.
• C)of the purchase and the date of cash payment for the purchase.
• D)the merchandise is ordered and the date payment is made for the merchandise.

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Definitions:

Minimizing Law

The principle suggesting that organisms will adapt their behaviors in order to minimize negative consequences or punishments.

Contrast Law

A principle in psychology that states the perceived intensity of a stimulus can change relative to the intensity of a preceding or surrounding stimulus.

Mowrer's Two-Factor Theory

A theory proposing that avoidance learning involves both classical conditioning of fear and operant conditioning of the avoidance response.

Avoidance Conditioning

A learning process in operant conditioning wherein an individual learns a behavior to avoid an undesired stimulus or outcome.