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Distinguish between foreign transactions & currency transactions

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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.

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

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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 ...

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Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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