A Transaction Gain or Loss at the Settlement Date Is

question 32

Multiple Choice

A transaction gain or loss at the settlement date is:

• A) a change in the exchange rate quoted by a foreign exchange trader.
• B) synonymous with the translation of foreign currency financial statements into dollars.
• C) the difference between the recorded dollar amount of an account receivable denominated in a foreign currency and the amount of dollars received.
• D) the difference between the buying and selling rate quoted by a foreign exchange trader at the settlement date.

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Definitions:

Intangible Activity

Economic or business activity that is not physical in nature, often related to services, knowledge, or intellectual property.

Tangible

Physical objects or assets that can be seen, touched, and measured.

Physical

is related to material things or bodies rather than the mind or spirit, often used in terms of physical properties or possessions.

Circular-flow Model

An economic model illustrating the movement of resources and money between producers and consumers within an economy, showcasing the interconnectedness of businesses, households, and the government.