A US Company Sells Merchandise to a Foreign Company Denominated in in U.S

question 26

Multiple Choice

A U.S. company sells merchandise to a foreign company denominated in U.S. dollars. Which of the following statements is true?

• A) If the foreign currency appreciates, a foreign exchange gain will result.
• B) If the foreign currency depreciates, a foreign exchange gain will result.
• C) No foreign exchange gain or loss will result.
• D) If the foreign currency appreciates, a foreign exchange loss will result.
• E) If the foreign currency depreciates, a foreign exchange loss will result.

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Definitions:

Report-Writing

The process of organizing and presenting information in a structured document for a specific audience and purpose.

Noncomparable Data

Information that cannot be directly compared because it differs significantly in nature or measurement.

Problem Statement

A brief explanation of a problem that needs solving or a situation that requires enhancement.

Business Report

A detailed document that presents data, analyses, and conclusions related to a particular business situation or problem.