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Concept Introduction:
Foreign Currency Transactions:
A business doing international transaction enters into the foreign currency transactions. The value of foreign current keeps changing and these results in the foreign exchange gain or loss for the business.
The accounting for foreign exchange gain or loss is done with separate disclosures in the financial statements.
To Indicate:
If the U.S. Company shall recognize the foreign exchange gain or loss
Answer to Problem 15DQ
Yes, the U.S. Company shall recognize the foreign exchange gain or loss
Explanation of Solution
A business doing international transaction enters into the foreign currency transactions. The value of foreign current keeps changing and these results in the foreign exchange gain or loss for the business.
The accounting for foreign exchange gain or loss is done with separate disclosures in the financial statements. Hence, the U.S. Company shall recognize the foreign exchange gain or loss
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Chapter 15A Solutions
Loose Leaf For Fundamental Accounting Principles Format: Loose-leaf
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