Financial Accounting Questions Assignment Example | Topics and Well Written Essays - 250 words

Financial Accounting Questions - Assignment Example The international financial market is closely related to the very important and valuable concept of exchange rate. The exchange rate is basically establishes a relationship between currencies (Meese & Rogofp, 1988). If Dollar is dropping against Euro then, the trade-man should opt for receiving payments in Euros because it is more stable of the two involved currencies. Additionally, the seller will have the option of converting Euros into Dollars at a later stage in order to make a capital gain due to increasing disparity between the two currencies. In short, by delaying the conversion the seller can make more dollars against the same amount of Euros. The company’s management has the ultimate responsibility and duty to safeguard the company’s assets because they are hired to do so by shareholders who do not have the required expertise to manage their business on their