A Foreign-Currency Transaction Gain or Loss on a Credit Purchase

question 28

Multiple Choice

A foreign-currency transaction gain or loss on a credit purchase is calculated as the difference between the exchange rates on:

• A) the date the merchandise is ordered and the date it arrives
• B) the date of the purchase and the date of cash payment for the purchase
• C) the date the merchandise is purchased and the date it is sold
• D) the date the merchandise is ordered and the date payment is made for the merchandise