A sale of goods by a U.S. company was denominated in a foreign currency. The sale resulted in a receivable that was fixed in terms of the amount of foreign currency that would be received. Exchange rates between the dollar and the foreign currency changed so that a loss was incurred. This loss should be included as a

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A sale of goods by a U.S. company was denominated in a foreign currency. The sale resulted in a receivable
that was fixed in terms of the amount of foreign currency that would be received. Exchange rates between
the dollar and the foreign currency changed so that a loss was incurred. This loss should be included as a
a.
Extraordinary item in the income statement
b.
Separate component of stockholders' equity
O c.
Deferred item in the balance sheet
O d. Component of income from continuing operations
Transcribed Image Text:A sale of goods by a U.S. company was denominated in a foreign currency. The sale resulted in a receivable that was fixed in terms of the amount of foreign currency that would be received. Exchange rates between the dollar and the foreign currency changed so that a loss was incurred. This loss should be included as a a. Extraordinary item in the income statement b. Separate component of stockholders' equity O c. Deferred item in the balance sheet O d. Component of income from continuing operations
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