1. What is the concept underlying the two-transaction perspective in accounting for foreign currency transactions? 2. A company makes an export sale denominated in a foreign currency and allows the customer one month to pay. Under the two-transaction perspective, accrual approach, how does the company account for fluctuations in the exchange rate for the foreign currency? 3. What factors create a foreign exchange gain on a foreign currency transaction? What factors create a foreign exchange loss? 4. What does the word hedging mean? Why do companies hedge foreign exchange risk? 1. What is the concept underlying the two-transaction perspective in accounting for foreign currency transactions? 2. A company makes an export sale denominated in a foreign currency and allows the customer one month to pay. Under the two-transaction perspective, accrual approach, how does the company account for fluctuations in the exchange rate for the foreign currency? 3. What factors create a foreign exchange gain on a foreign currency transaction? What factors create a foreign exchange loss? 4. What does the word hedging mean? Why do companies hedge foreign exchange risk