A sale of goods, denominated in a currency other than the entity's functional currency, resulted in a receivable that was fixed in terms of the amount of foreign currency that would be received. Exchange rates between the functional currency and the currency in which the transaction was denominated changed. The resulting gain should be included as a (an)
A) Other comprehensive income
B) Deferred credit
C) Component of income from continuing operations
D) Discontinued operations

Question

Quizplus · Accepted Answer

The resulting gain should be included as a component of other comprehensive income because it is a foreign currency translation gain.

A Sale of Goods, Denominated in a Currency Other Than