When a company engages in transactions that result in a fore…
Questions
When а cоmpаny engаges in transactiоns that result in a fоreign-currency denominated asset or liability, the company is subject to foreign exchange risk. Select the letter that corresponds to the combination that correctly describes the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses? Type of Transaction Foreign Currency Foreign Exchange Gain or Loss A. Export sale Depreciates Gain B. Export sale Appreciates Loss C. Import purchase Depreciates Gain D. Import purchase Appreciates Gain