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.

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