Sphinx Co(Sphinx)records Its Transactions in U

question 8

Short Answer

Sphinx Co.(Sphinx)records its transactions in U.S.dollars.A sale of goods resulted in a receivable denominated in Japanese yen,and a purchase of goods resulted in a payable denominated in Euros.Sphinx recorded a foreign exchange transaction gain on collection of the receivable and an exchange transaction loss on the settlement of the payable.The exchange rates are expressed as so many units of foreign currency to one dollar.Did the number of foreign currency units exchangeable for a dollar increase or decrease between the contract and settlement dates?

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Definitions:

Unjust Enrichment

A legal principle where one party is unjustly benefited at the expense of another, often requiring restitution to the party disadvantaged.

Express Trust

A trust explicitly created by a trustor, typically in written form, specifying the beneficiary and terms of the trust.

Estate Plan

A comprehensive approach to managing an individual's assets and financial affairs during their lifetime and distributing assets upon their death.

Beneficiaries

Individuals or entities designated to receive benefits or assets from wills, trusts, insurance policies, or other instruments.