A Company Has a Foreign-Currency Transaction Loss of $1,000 and a Foreign-Currency

question 110

Multiple Choice

A company has a Foreign-Currency Transaction Loss of $1,000 and a Foreign-Currency Transaction Gain of $10,000.How is this information reported on the income statement?

• A)Other Losses: Foreign-Currency Transaction Loss $1,000 and Other Gains: Foreign-Currency Transaction Gain $10,000
• B)Other Gains: Foreign-Currency Transaction Gain,net $9,000
• C)Other Comprehensive Income: Foreign-Currency Transaction Gain $10,000 and Other Comprehensive Loss: Foreign-Currency Transaction Loss $1,000
• D)Other Comprehensive Income: Foreign-Currency Transaction Gain,net $9,000

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Definitions:

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Foreign Exchange Rate

The rate at which one currency can be swapped for a different currency.

International Customer

A customer residing in a different country than the one where the seller's business operates, often requiring considerations for shipping, customs, and currency exchange.

Fiscal Year

A one-year period used for accounting and financial reporting purposes, which may not align with the calendar year.