What Is the Primary Difference Between Transaction Exposure and Accounting

question 8

Multiple Choice

What is the primary difference between transaction exposure and accounting exposure?

• A) Transaction exposure results from changes in currency exchange rates, whereas accounting exposure is the result of changes in accounting method.
• B) Transaction exposure results in changes in cash flow, whereas accounting exposure does not necessarily result in changes in cash flow.
• C) Transaction exposure must be hedged, but accounting exposure does not need to be hedged.
• D) Transaction exposure affects only monetary assets and liabilities, whereas accounting exposure affects all assets and liabilities.

---

Definitions:

Social Engineering

Psychological manipulation or deception of people into performing actions or divulging confidential information.

Software Attacks

Malicious activities aimed at disrupting, damaging, or gaining unauthorized access to computer systems and networks.

Defacing

An act of vandalism that involves altering the appearance of a website, often to spread messages or cause disruption.

Organization's Website

A website dedicated to providing information about an organization, its mission, services, and contact details.