Under US GAAP, What Method Is Required to Account for Foreign

question 44

Multiple Choice

Under U.S. GAAP, what method is required to account for foreign currency transactions?

• A) A one-transaction perspective must be used.
• B) The two-transaction perspective must be used.
• C) A sale is not recorded until payment is received and converted to U.S. dollars.
• D) A sale is not recorded until payment is received in the foreign currency.

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Definitions:

Edema

Swelling caused by excess fluid trapped in the body's tissues, often affecting the legs, feet, or arms, and can result from various medical conditions.

Discolored Skin

A change in skin color, which may be a sign of injury, illness, or other medical conditions.

Sodium

A chemical element, symbol Na, that is a highly reactive metal and an essential component of animal and human physiology, particularly in the regulation of fluids and blood pressure.

Potassium

A chemical element with symbol K, essential for various bodily functions including heart rate and muscle function.