What Is the Effect of Fluctuations in Exchange Rates on Accounts

question 44

Multiple Choice

What is the effect of fluctuations in exchange rates on accounts payable?

• A)Deferred and amortized
• B)Deferred to maturity
• C)Recognized immediately in income
• D)Recognized if losses, deferred if gains

---

Definitions:

Birds-Of-A-Feather Effect

The tendency for individuals to associate and bond with others who are similar to themselves in terms of attitudes, values, and characteristics.

Saturation Effect

A phenomenon where, after a certain point, an increase in some stimulus does not lead to a further change in response.

Foot-In-The-Door Effect

A persuasion technique that involves getting a person to agree to a large request by first setting them up by agreeing to a modest request.

Foot-In-The-Door Technique

A persuasion strategy where compliance with a small request is followed by a larger request, leveraging the principle of consistency to increase the likelihood of agreement to the second request.