Gains or losses on foreign currency transactions are recorded before the related receivable or payable is settled when
A)the government cannot set an exchange rate for the foreign currency.
B)the foreign currency is unknown.
C)the fiscal year ends after the settlement of the receivable or payable.
D)the fiscal year ends before the settlement of the receivable or payable.

Question

Quizplus · Accepted Answer

Gains or losses on foreign currency transactions are recorded before the related receivable or payable is settled when the fiscal year ends before the settlement of the receivable or payable. This is done to ensure proper matching of revenues and expenses in the same fiscal year.

Gains or Losses on Foreign Currency Transactions Are Recorded Before