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.

---

Definitions:

Objective Thinking

A way of reasoning and making decisions based on facts and evidence, without influence from personal feelings or biases.

Entrepreneurial Mindset

A way of thinking that embraces challenge, innovation, and the continuous pursuit of new opportunities in the face of potential failure.

Quick Direction

Rapid guidance or instructions provided to achieve a certain task or to navigate towards a specific goal effectively.

Effective Mindset

A mental approach or attitude that prioritizes efficiency, goal achievement, and a positive outlook towards challenges.