For Each of the Following Situations, Select the Best Answer

question 50

Essay

For each of the following situations, select the best answer concerning accounting for foreign currency transactions:
(G) Results in a foreign exchange gain.
(L) Results in a foreign exchange loss.
(N) No foreign exchange gain or loss.
_____1.Export sale by a U.S.company denominated in dollars, foreign currency of buyer appreciates.
_____2.Export sale by a U.S.company denominated in foreign currency, foreign currency of buyer appreciates.
_____3.Import purchase by a U.S.company denominated in foreign currency, foreign currency of buyer appreciates.
_____4.Import purchase by a U.S.company denominated in dollars, foreign currency of buyer appreciates.
_____5.Import purchase by a U.S.company denominated in foreign currency, foreign currency of buyer depreciates.
_____6.Import purchase by a U.S.company denominated in dollars, foreign currency of buyer depreciates.
_____7.Export sale by a U.S.company denominated in dollars, foreign currency of buyer depreciates.
_____8.Export sale by a U.S.company denominated in foreign currency, foreign currency of buyer depreciates.

---

Definitions:

Convergence

The process by which two or more things come together or evolve toward becoming similar or identical, often used in the context of ideas, technologies, or evolutionary biology.

Depth Perception

The ability to perceive the distance of an object as well as the three-dimensional characteristics of objects, allowing for the estimation of distances between objects and the observer.

Eye Muscles

Muscles located around the eyes that enable movements of the eyeball and adjusting the pupil size.

Binocular Disparity

A visual phenomenon where each eye receives a slightly different image, which the brain merges to perceive depth.