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Angela, Inc

question 28

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Angela, Inc., a U.S.company, had a euro receivable from exports to Spain and a British pound payable resulting from imports from England.Angela recorded foreign exchange gain related to both its euro receivable and pound payable.Did the foreign currencies increase or decrease in dollar value from the date of the transaction to the settlement date? Angela, Inc., a U.S.company, had a euro receivable from exports to Spain and a British pound payable resulting from imports from England.Angela recorded foreign exchange gain related to both its euro receivable and pound payable.Did the foreign currencies increase or decrease in dollar value from the date of the transaction to the settlement date?


Definitions:

Return on Equity

A financial ratio that measures the profitability of a company in relation to the shareholder's equity.

Profit Margin

A financial metric that measures the extent to which a company or a business activity makes money, expressed as a percentage of sales revenues.

Debt-Equity Ratio

The ratio that evaluates the equity-versus-debt financing approach for company assets.

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