All of the Following Statements Relating to Accounting for International

question 116

Multiple Choice

All of the following statements relating to accounting for international operations are true except:

• A)Foreign exchange gains or losses can occur when accounting for international sales transactions.
• B)Gains and losses from foreign exchange transactions are accumulated in the Fair Value Adjustment Account and are reported on the balance sheet.
• C)Gains and losses from foreign exchange transactions are accumulated in the Foreign Exchange Gain (or Loss)account.
• D)The balance in the Foreign Exchange Gain (or Loss)account is reported on the income statement.
• E)Foreign exchange gains or losses can occur when accounting for international purchases transactions.