A company has a Foreign-Currency Transaction Gain of $1,000 and a Foreign-Currency Transaction Loss of $10,000.How is this information reported on the income statement?
A)Other Losses: Foreign-Currency Transaction Loss $10,000 and Other Gains: Foreign-Currency Transaction Gain $1,000
B)Other Losses: Foreign-Currency Transaction Loss,net $9,000
C)Other Comprehensive Loss: Foreign-Currency Transaction Loss $10,000 and Other Comprehensive Income: Foreign-Currency Transaction Gain $1,000
D)Other Comprehensive Loss: Foreign-Currency Transaction Loss,net $9,000

Question

Quizplus · Accepted Answer

Foreign-currency transaction gains and losses are typically netted and reported as a single net amount on the income statement. In this case, the net loss is $9,000.

A Company Has a Foreign-Currency Transaction Gain of $1,000 and a Foreign-Currency