A transaction gain is recorded when there is an:
A) importing transaction and the exchange rate increases.
B) exporting transaction and the exchange rate increases.
C) exporting transaction and the exchange rate decreases.
D) none of these.

Question

Quizplus · Accepted Answer

A transaction gain occurs when an exporting transaction is settled at a higher exchange rate than when it was initially recorded, resulting in more revenue in the reporting currency.

A Transaction Gain Is Recorded When There Is An