6. A U.S. multinational enterprise has an account receivable from a German customer and an account payable

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6. A U.S. multinational enterprise has an account receivable from a German customer and an account payable to an unrelated German supplier, both of which are denominated in the euro. If the exchange rate for the euro decreases, the result to the enterprise will be realization of foreign currency transaction gains or losses as follows:

On Account Receivable On Account Payable Transaction gain Transaction gain Transaction loss Transaction loss Transaction loss Transaction gain Transaction gain Transaction loss

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