Under US GAAP, What Is the Proper Treatment of Unrealized Foreign

question 16

Multiple Choice

Under U.S. GAAP, what is the proper treatment of unrealized foreign exchange gains?

• A) They should be deferred on the Balance Sheet until cash is received.
• B) The principle of conservatism requires that they should never be recognized.
• C) They should not be recorded until cash is received and the exchange transaction is completed.
• D) They should be recognized in income on the date the exchange rate changes.

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Definitions:

Slavery

A system in which people are treated as property to be bought, sold, and forced into labor without rights, historically widespread across the world and a significant cause of social and political strife.

Western Europeans

pertains to people or cultures originating from the western part of Europe, including countries like France, Germany, and the United Kingdom.

Prestige

The respect and admiration that a particularly successful or influential person or entity is regarded with, often due to their achievements.

Silk Road

An ancient network of trade routes that connected the East and West, facilitating not only the exchange of goods but also ideas and cultures.