Question: What is the primary difference between transaction exposure and accounting exposure? Multiple Choice Transaction exposure must be hedged, but accounting exposure does not need to
What is the primary difference between transaction exposure and accounting exposure?
Multiple Choice
Transaction exposure must be hedged, but accounting exposure does not need to be hedged.
Transaction exposure affects only monetary assets and liabilities, whereas accounting exposure affects all assets and liabilities.
Transaction exposure results from changes in currency exchange rates, whereas accounting exposure is the result of changes in accounting method.
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