A U.S.company sells goods on account to a French company.The French company will pay in euros.If the euro strengthens before the U.S.company collects,the U.S.company will have a foreign-currency transaction gain.

Question

Quizplus · Accepted Answer

If the euro strengthens, the U.S. company will receive more dollars when converting the euros into dollars. This results in a foreign-currency transaction gain.

A USCompany Sells Goods on Account to a French Company