________ gains and losses are "realized" whereas ________ gains and losses are only "paper."
A) Translation; transaction
B) Transaction; translation
C) Translation; operating
D) none of the above

Question

Quizplus · Accepted Answer

Transaction gains and losses are realized when an actual transaction is executed, whereas translation gains and losses are only "paper" or unrealized because they arise from fluctuations in foreign currency exchange rates when financial statements of foreign subsidiaries are translated into the reporting currency of the parent company. Operating gains and losses are a separate category of gains and losses that arise from the company's normal operations, such as the sale of goods or services.

________ Gains and Losses Are "Realized" Whereas ________ Gains and Losses

Gains and Losses Are "Realized" Whereas Gains and Losses