Which of the Following Statements Is True of the Relationship

question 59

Multiple Choice

Which of the following statements is true of the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses?

• A) In an export sales, depreciation of the foreign currency causes a foreign exchange gain.
• B) In an import purchase, appreciation of the foreign currency causes a foreign exchange gain.
• C) In an import purchase, depreciation of the foreign currency causes a foreign exchange loss.
• D) In an export sales, appreciation of the foreign currency causes a foreign exchange gain.

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Definitions:

Business Communication

The sharing of information between people within an organization and with those outside it, conducted for the commercial benefit of the organization.

Memo

A written communication, usually brief and formal, used to convey information or instructions within an organization.

Gathering

The action of bringing together people or collecting things.

Structure

The arrangement or organization of components within a system, document, or composition, influencing function or perception.