The main difficulties in accounting for foreign currency transactions,investments and activities arise because:
A)transactions occur over a period,yet the need to report on those transactions occurs at a different time
B)some transactions occur over lengthy periods of time,during which there may be substantial exchange rate movements
C)foreign exchange transactions may often involve additional parties
D)all of the above

Question

Quizplus · Accepted Answer

All of the given options are correct in describing the main difficulties in accounting for foreign currency transactions, investments, and activities. Transactions may occur over a period, creating the need to report on them at a different time. Additionally, lengthy periods of time can lead to significant exchange rate movements, and foreign exchange transactions may involve additional parties, making the accounting process more complicated.

The Main Difficulties in Accounting for Foreign Currency Transactions,investments and Activities