Which of the following statements is true of the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses?
A) In an export sales, depreciation of the foreign currency causes a foreign exchange gain.
B) In an import purchase, appreciation of the foreign currency causes a foreign exchange gain.
C) In an import purchase, depreciation of the foreign currency causes a foreign exchange loss.
D) In an export sales, appreciation of the foreign currency causes a foreign exchange gain.

Question

Quizplus · Accepted Answer

In an export sale, if the foreign currency appreciates, the exporter receives more in their home currency, resulting in a foreign exchange gain.

Which of the Following Statements Is True of the Relationship