A decrease in foreign currency value relative to the U.S. dollar between the date of purchase and date of payment will create an exchange gain.

Name: A decrease in foreign currency value relative to the U.S. dollar between the date of purchase and date of payment will create an exchange gain.
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Question

Quizplus · Accepted Answer

When the foreign currency depreciates relative to the U.S. dollar, it takes fewer dollars to settle the same amount of foreign currency liability, resulting in an exchange gain.

A Decrease in Foreign Currency Value Relative to the U