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

question 13

Multiple Choice

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

• A) They should be deferred on the Balance Sheet until the cash is paid.
• B) They should not be recognized until cash is received to complete the transaction.
• C) They should be recorded on the Income Statement in the period the exchange rate changes.
• D) They should be deferred on the Balance Sheet until an offsetting foreign exchange gain is realized.

---

Definitions:

Linking People

The process of connecting individuals or groups for the purpose of communication, collaboration, or community building.

Goods And Services

The output of economic activities that satisfy human wants; goods are tangible products, while services are intangible activities or benefits.

Advanced Industrial Society

A term used to describe societies that are characterized by high levels of industrialization, technological advancement, and economic productivity.

Nature And Society

A concept exploring the relationships and interactions between the natural environment and human societies, and how each influences the other.