If a U.S.company sells goods for a fixed number of British pounds,and the exchange rate has risen from $1.60 per pound to $1.65 per pound by the time collection is made,the U.S.company would record an exchange loss.

Question

Quizplus · Accepted Answer

The exchange rate has risen, which means the British pound is now worth more in dollars. Therefore, the U.S. company would actually record an exchange gain.

If a USCompany Sells Goods for a Fixed Number of British Pounds,and