1. All of the following statements relating to accounting for international operations are true except:

		Gains and losses from foreign exchange transactions are accumulated in the Fair Value Adjustment Account and are reported on the balance sheet.
		Foreign exchange gains or losses can occur when accounting for international purchases transactions.
		The balance in the Foreign Exchange Gain (or Loss) account is reported on the income statement.
		Gains and losses from foreign exchange transactions are accumulated in the Foreign Exchange Gain (or Loss) account.
		Foreign exchange gains or losses can occur when accounting for international sales transactions.