A US-Based Company Sells Merchandise on Account to a Company in in Mexico.The

question 60

Multiple Choice

A U.S.-based company sells merchandise on account to a company in Mexico.The Mexican company wants to pay for the merchandise in pesos.If the peso decreases in value relative to the dollar,the seller will record a ________.We say the peso ________ relative to the dollar.

• A)Foreign Currency Transaction Gain; weakens
• B)Foreign Currency Transaction Gain; strengthens
• C)Foreign Currency Transaction Loss; weakens
• D)Foreign Currency Transaction Loss; strengthens

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Definitions:

R&D Expenditures

Funds invested by companies or governments in research and development to innovate or improve products, services, or processes.

Concentration Ratio

A measure indicating the market share of the largest firms in an industry, used to determine the market's level of competition.

Technological Opportunities

The potential for firms to develop innovations or improve processes due to advances in technology.

R&D Expenditures

Funds allocated by a company towards research and development efforts aimed at innovation and improving products or processes.