Sanuk purchased on credit $\leq$20,000 worth of parts from a British company when the exchange rate was $\leq$1.66 per British pound. At the year-end balance sheet date the exchange rate increased to $1.69. Sanuk must record a gain of $600.

Question

Quizplus · Accepted Answer

The exchange rate increased from 1.66 to 1.69, which means the US dollar weakened relative to the British pound. This would result in a loss for Sanuk, not a gain. Therefore, the statement is false.

Sanuk Purchased on Credit ≤\leq≤ 20,000 Worth of Parts from a British Company When the a British

Sanuk Purchased on Credit $\leq$ 20,000 Worth of Parts from a British Company When the a British