Explore BrainMass

Explore BrainMass

    Distinguish between foreign transactions & currency transactions

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Discuss the meaning of this statement: "All foreign currency transactions are foreign transactions, but not all foreign transactions are foreign currency transactions." Provide an example that fits this description, and explain why it is important to understand this concept.

    © BrainMass Inc. brainmass.com December 15, 2020, 11:30 pm ad1c9bdddf

    Solution Preview

    If you have a transaction that uses a currency other than what you report in your financial statements, you have a "foreign currency transaction." That is, you must adjust to report the ...

    Solution Summary

    Show but clear discussion (132 words) with two examples to illustrate the distinction.