Under U.S. GAAP, foreign exchange losses should be recorded by:
A) debiting "Foreign Exchange Loss".
B) crediting "Foreign Exchange Loss".
C) debiting "Retained Earnings".
D) debiting "Sales Revenue".

Question

Quizplus · Accepted Answer

Under U.S. GAAP, foreign exchange losses should be recorded by debiting "Foreign Exchange Loss". This is because, according to accounting standards, losses are recorded by debiting an account while gains are recorded by crediting an account. Therefore, the correct option is choice letter A.

Under US GAAP, Foreign Exchange Losses Should Be Recorded By