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Foreign Currency and Export Sales

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1) A company makes an export sale denominated in a foreign currency and allows the customer one month to pay. Under the two-transaction perspective, accrual approach, how does the company account for fluctuations in the exchange rate for the foreign currency?

2) What concept underlies the two-transaction perspective in accounting for foreign currency transactions?

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The solution discusses the export sale denomination in a foreign currency which allows a customer one month to pay.

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1) A company makes an export sale denominated in a foreign currency and allows the customer one month to pay. Under the two-transaction perspective, accrual approach, how does the company account for fluctuations in the exchange rate for the foreign currency?

Under the two-transaction perspective, an export ...

Solution provided by:
Manal Elkhoshkhany, MBA
Education
  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
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