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Frankfurter Company,a U  Ruble  Euro \begin{array} {cc } & \quad\underline {\text { Ruble }} &\quad\quad \underline { \text { Euro } } \\\end{array}

Question 54

Short Answer

Frankfurter Company,a U.S.company,had a ruble receivable from exports to Russia and a euro payable resulting from imports from Italy.Frankfurter recorded foreign exchange loss related to both its ruble receivable and euro payable.Did the foreign currencies increase or decrease in dollar value from the date of the transaction to the settlement date?  Ruble  Euro \begin{array} {cc } & \quad\underline {\text { Ruble }} &\quad\quad \underline { \text { Euro } } \\\end{array}
A)  Increase  Decrease \begin{array} { cc} & \text { Increase } &\quad \text { Decrease } \\\end{array}
B)  Decrease  Decrease \begin{array} {cc } & \text { Decrease } & \quad\text { Decrease } \\\end{array}
C)  Decrease  Increase \begin{array} { cc } & \text { Decrease } &\quad \text { Increase } \\\end{array}
D)  No change  Decrease \begin{array} { cc} & \text { No change } & \text { Decrease } \\\end{array}
E)  Increase  Increase \begin{array} {cc} & \text { Increase } &\quad \text { Increase } \\\end{array}

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