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

question 13

Multiple Choice

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

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

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Definitions:

Actor/Observer Bias

The tendency to attribute one's own actions to external causes while attributing others' actions to their personality.

Self-Fulfilling Prophecy

A situation where an individual's expectations or the expectations of others lead to behaviors that cause those expectations to come true.

Ingroup/Outgroup Bias

The tendency to favor members of one's own group (the ingroup) over those in other groups (the outgroup), often leading to prejudice and discrimination.

Self-Fulfilling Prophecy

A belief or expectation that influences behavior in a way that causes the belief to become true.