Foreign Exchange Rate: It refers to the price of one currency which is expressed in terms of the currency of another country. In other words, the foreign exchange rate is the rate at which the currency of two countries is exchanged. Whether the company can record exchange gain or loss if credit sales were made by country U’s Company to the foreign company and it is asked to make payment in dollars.

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Chapter 15A, Problem 14DQ

To determine

Concept Introduction:

Foreign Exchange Rate: It refers to the price of one currency which is expressed in terms of the currency of another country. In other words, the foreign exchange rate is the rate at which the currency of two countries is exchanged.

Whether the company can record exchange gain or loss if credit sales were made by country U’s Company to the foreign company and it is asked to make payment in dollars.

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