It Is Possible for Transaction Exposure to Be Positive and Translation

question 31

Multiple Choice

It is possible for transaction exposure to be positive and translation exposure in the same currency to be

• A)always positive
• B)exactly offsetting
• C)negative
• D)synonymous

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Definitions:

Expense Recognition

An accounting principle that dictates when the cost of business operations should be recorded in the financial statements.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Purchase Returns

Transactions where buyers return previously purchased merchandise to the seller, resulting in a reduction of cost of goods sold for the seller and a refund or credit for the buyer.

Freight-In

The shipping cost for merchandise transported into a company's inventory, typically considered part of the cost of goods sold.