What is a foreign currency transaction?
A) It is another name for an international transaction.
B) It is a transaction that involves payment at a date sometime in the future.
C) It is a business deal denominated in a currency other than a company's domestic currency.
D) It is an economic event measured in a currency other than U.S. dollars.

Question

Quizplus · Accepted Answer

A foreign currency transaction is a business deal that is denominated in a currency other than a company's domestic currency. This means that the transaction involves converting one currency into another at the prevailing exchange rate. For example, if a U.S. company purchases goods from a foreign supplier and pays in euros, then it has engaged in a foreign currency transaction.

What Is a Foreign Currency Transaction