- This topic has 1 reply, 2 voices, and was last updated 3 months ago by John Moffat.
- You must be logged in to reply to this topic.
Instant Poll - Read and post comments:
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
there is true or false question in kaplan kit
question–invoicing in dollars will eliminate all foreign exchange risk that PZK is exposed to
answer= false reason given= may still be exposed to transaction risk on purchases
can you explain this sir?
https://opentuition.com/topic/mtq-4/ == here you have told it eliminates all transaction risk
thank you 🙂
My previous post that you have linked to does not say that at all.
As far as the transaction risk is concerned, then invoicing customers in the home currency will eliminate the transaction risk on the sales. However it will obviously not eliminate the transaction risk on purchases (unless the supplier agrees to invoice in our currency).