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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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    https://brainmass.com/business/international-finance/export-sale-denominated-foreign-currency-165685

    Solution Preview

    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 Summary

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

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