AICPA Exam CPA-Business Topic 2 Question 76 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 76
Topic #: 2

What is the effect when a foreign competitor's currency becomes weaker compared to the U.S. dollar?

AThe foreign company will have an advantage in the U.S. market.

BThe foreign company will be disadvantaged in the U.S. market.

CThe fluctuation in the foreign currency's exchange rate has no effect on the U.S. company's sales or cost of goods sold.

DIt is better for the U.S. company when the value of the U.S. dollar strengthens.

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct.

Choices 'a', 'b', and 'd' are incorrect, per the above calculation.

by Cory at Oct 19, 2023, 07:42 AM

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