A US Company Sells Merchandise to a Foreign Company Denominated in in the Foreign

question 16

Multiple Choice

A U.S. company sells merchandise to a foreign company denominated in the foreign currency. 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) Any gain or loss will be included in comprehensive income.

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Definitions:

Glaucoma

A group of eye conditions that can cause damage to the optic nerve, often due to high eye pressure, and can lead to vision loss if not treated.

Chemotherapy

A type of cancer treatment using one or more anti-cancer drugs as part of a standardized regimen to kill or slow the growth of cancer cells.

Cataracts

A condition characterized by the clouding of the lens in the eye, leading to a decrease in vision.

Opium

A narcotic drug obtained from the opium poppy, used historically in medicine for pain relief and sedation.