Other things equal, a firm would rather have ________ in a depreciating currency, and ________ in an appreciating currency.
A)accounts receivable; accounts payable
B)accounts receivable; accounts receivable
C)accounts payable; accounts receivable
D)none of the above

Question

Quizplus · Accepted Answer

A firm would prefer to have accounts payable in a depreciating currency because it will cost less to settle these liabilities in the future. Conversely, it would prefer accounts receivable in an appreciating currency because the value of the receivables will increase over time.

Other Things Equal, a Firm Would Rather Have ________ in a Depreciating