All of the following are foreign currency transactions for a company that has A$ as its functional currency, except:
A) goods sold at prices denominated in Japanese Yen.
B) inventory sold to a customer in Hong Kong who pays in A$.
C) borrowing funds where amounts are payable in NZ$.
D) equipment sold at prices denominated in pounds.

Question

Quizplus · Accepted Answer

Foreign currency transactions involve transactions denominated in a currency other than the entity's functional currency. In choice B, the transaction is denominated in the company's functional currency (A$), not a foreign currency, making it the exception.

All of the Following Are Foreign Currency Transactions for a Company