Angela, Inc., a U.S. company, had a euro receivable from exports to Spain and a British pound payable resulting from imports from England. Angela recorded foreign exchange gain related to both its euro receivable and pound payable. Did the foreign currencies increase or decrease in dollar value from the date of the transaction to the settlement date? $$\begin{array} { | l | l | l | }
\hline & \text { Euro } & \text { Pound } \
\hline \text { A) } & \text { Increase } & \text { Increase } \
\hline \text { B) } & \text { Increase } & \text { Decrease } \
\hline \text { C) } & \text { Decrease } & \text { Decrease } \
\hline \text { D) } & \text { Decrease } & \text { Increase } \
\hline \text { E) } & \text { No change } & \text { Decrease } \
\hline
\end{array}$$

Question

Angela, Inc., a U.S. company, had a euro receivable from exports to Spain and a British pound payable resulting from imports from England. Angela recorded foreign exchange gain related to both its euro receivable and pound payable. Did the foreign currencies increase or decrease in dollar value from the date of the transaction to the settlement date? $$\begin{array} { | l | l | l | } 
\hline & \text { Euro } & \text { Pound } \
\hline \text { A) } & \text { Increase } & \text { Increase } \
\hline \text { B) } & \text { Increase } & \text { Decrease } \
\hline \text { C) } & \text { Decrease } & \text { Decrease } \
\hline \text { D) } & \text { Decrease } & \text { Increase } \
\hline \text { E) } & \text { No change } & \text { Decrease } \
\hline
\end{array}$$

Quizplus · Accepted Answer

Angela recorded a foreign exchange gain on the euro receivable, indicating the euro increased in dollar value. The gain on the pound payable indicates the pound decreased in dollar value.

Angela, Inc A) a Above B) B Above C) C Above D)

Angela, Inc A) a Above
B) B Above
C) C Above
D)