A short-term financial decision based on an MNC management's expectation that the local foreign currency will appreciate may be ________.
A) increasing local customers' accounts receivable and increasing local notes payable
B) decreasing local notes receivable and decreasing accruals
C) increasing local inventories and increasing local notes payable
D) increasing local accounts receivable and decreasing local accounts payable

Question

Quizplus · Accepted Answer

If the local foreign currency is expected to appreciate, the MNC may want to increase local accounts receivable to benefit from the appreciation and decrease local accounts payable to avoid paying more in the future.

A Short-Term Financial Decision Based on an MNC Management's Expectation