Exchange rates are required in journal entries -
A)only when payments are made to suppliers or received from customers because money has changed hands
B)only at the time of a purchase or sale because the expense or income is realized at that time in accrual-based accounting
C)whenever the exchange rate changes because otherwise they do not affect amounts in journal transactions
D)for all journal transactions involving foreign currencies

Question

Quizplus · Accepted Answer

Exchange rates should be included in all journal transactions involving foreign currencies to accurately reflect the value of the transaction in the financial statements. This includes purchases, sales, returns, and any other transactions that involve a foreign currency.

Exchange Rates Are Required in Journal Entries -