Which of the following approaches is used in the United States in accounting for foreign currency transactions?
A) One-transaction perspective; defer foreign exchange gains and losses.
B) Two-transaction perspective; accrue foreign exchange gains and losses.
C) Three-transaction perspective; defer foreign exchange gains and losses.
D) One-transaction perspective; accrue foreign exchange gains and losses.
E) Two-transaction perspective; defer foreign exchange gains and losses.

Question

Quizplus · Accepted Answer

The United States uses a two-transaction perspective, where foreign exchange gains and losses are accrued in the period they occur. This approach treats the sale and the settlement of foreign currency as separate transactions.

Which of the Following Approaches Is Used in the United