Question
For each of the following situations, select the best answer concerning accounting for foreign currency transactions: (G) Results in a foreign exchange gain. (L) Results
For each of the following situations, select the best answer concerning accounting for foreign currency transactions:
(G) Results in a foreign exchange gain.
(L) Results in a foreign exchange loss.
(N) No foreign exchange gain or loss.
_____1. Export sale by a U.S. company denominated in dollars, foreign currency of buyer appreciates.
_____2. Export sale by a U.S. company denominated in foreign currency, foreign currency of buyer appreciates.
_____3. Import purchase by a U.S. company denominated in foreign currency, foreign currency of seller appreciates.
_____4. Import purchaseby a U.S. company denominated in dollars, foreign currency of seller appreciates.
_____5. Import purchase by a U.S. company denominated in foreign currency, foreign currency of seller depreciates.
_____6. Import purchase by a U.S. company denominated in dollars, foreign currency of seller depreciates.
_____7. Export sale by a U.S. company denominated in dollars, foreign currency of buyer depreciates.
_____8. Export sale by a U.S. company denominated in foreign currency, foreign currency of buyer depreciates.
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