All of the following statements relating to accounting for international operations are true except:
A)Foreign exchange gains or losses can occur when accounting for international sales transactions.
B)Gains and losses from foreign exchange transactions are accumulated in the Fair Value Adjustment Account and are reported on the balance sheet.
C)Gains and losses from foreign exchange transactions are accumulated in the Foreign Exchange Gain (or Loss)account.
D)The balance in the Foreign Exchange Gain (or Loss)account is reported on the income statement.
E)Foreign exchange gains or losses can occur when accounting for international purchases transactions.

Question

Quizplus · Accepted Answer

Gains and losses from foreign exchange transactions are not accumulated in the Fair Value Adjustment Account; they are typically recorded in the Foreign Exchange Gain (or Loss) account and reported on the income statement.

All of the Following Statements Relating to Accounting for International