In Which Situation Must U

question 26

Multiple Choice

In which situation must U.S.taxpayers use the U.S.dollar for recording international transactions?

• A)When the taxpayer is the creditor or debtor of a foreign currency debt
• B)When the taxpayer accrues foreign currency receivables or payables for income and expense items
• C)For ordinary gains and losses that arise in the normal course of busines
• D)When disposing of foreign currency

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Definitions:

Oral Contract

An agreement between parties spoken and agreed to aloud rather than written, yet is legally binding.

Consideration

The benefit, interest, right, or profit involved in an agreement or contract, on which it is based.

Statute of Frauds

A legal concept requiring certain types of agreements to be executed in writing and signed by the parties involved to be enforceable.

Collateral Promises

Agreements that are secondary to a primary transaction or promise, often requiring the backup of an asset as security.