A foreign currency sale is recorded as revenue, using the exchange rate:

Question

Quizplus · Accepted Answer

The foreign currency sale should be recorded as revenue using the exchange rate on the date of the sale. This is consistent with the matching principle, which requires that revenue and expenses be recorded in the same period in which they are incurred. Using the exchange rate on the date of the sale ensures that the revenue is recorded at the same time as the transaction that generates it.

A Foreign Currency Sale Is Recorded as Revenue, Using the Exchange