Foreign currency transaction gain


A foreign currency transaction gain will be recognized by a U.S. company when it has a receivable from a foreign company :

a) denominated in dollars and the foreign currency weakens relative to the dollar before payment is received

b) denominated in foreign currency and the foreign currency strengthens relative to the dollar before payment is received.

c) denominated in dollars and the foreign currency strengthens relative to the dollar before payment is received.

d) denominated in foreign currency and the foreign currency weakens relative to the dollar before payment is received.

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Accounting Basics: Foreign currency transaction gain
Reference No:- TGS047719

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