A US-Based Company Sells Merchandise on Account to a Company in in Mexico.The

question 60

Multiple Choice

A U.S.-based company sells merchandise on account to a company in Mexico.The Mexican company wants to pay for the merchandise in pesos.If the peso decreases in value relative to the dollar,the seller will record a ________.We say the peso ________ relative to the dollar.

• A)Foreign Currency Transaction Gain; weakens
• B)Foreign Currency Transaction Gain; strengthens
• C)Foreign Currency Transaction Loss; weakens
• D)Foreign Currency Transaction Loss; strengthens

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Definitions:

Straight-Line Depreciation

A procedure for breaking down the cost of a tangible asset over its period of operation in equal annual installments.

Mutually Exclusive

Situations or events that cannot occur at the same time, requiring a choice to be made.

Straight-Line Depreciation

A template for apportioning the cost of a solid asset throughout its active life in equal yearly parts.