All of the Following Statements Relating to Accounting for International

question 198

Multiple Choice

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

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