Gains or Losses on Foreign Currency Transactions Are Recorded Before

question 10

Multiple Choice

Gains or losses on foreign currency transactions are recorded before the related receivable or payable is settled when

• A)the government cannot set an exchange rate for the foreign currency.
• B)the foreign currency is unknown.
• C)the fiscal year ends after the settlement of the receivable or payable.
• D)the fiscal year ends before the settlement of the receivable or payable.

---

Definitions:

Budget Allocation

The process of distributing available resources or finances among various projects or departments within an organization or government.

Government Agency

An organization operated by the government, focusing on specific tasks and duties in public service or regulation.

Efficiency

The optimal allocation of resources in order to maximize the production of goods and services and minimize waste.

Government Agency

An organization established by the government to implement policy, carry out public services, or regulate activities within its jurisdiction.