Explore BrainMass

Recording and Reporting of Foreign Currency Transactions

Explain how transactions (both sales and purchases) in a foreign currency are recorded and reported.

© BrainMass Inc. brainmass.com August 19, 2018, 12:22 am ad1c9bdddf

Solution Preview

The response addresses the queries posted in 480 words with references.

// Before writing such paper one must analyze the various foreign currency transactions. These transactions take place in sales and purchases. Firstly we'll explain how the sales transactions are recorded and reported in a foreign currency.//

Foreign Currency Transactions (Sales)

Different companies are using different currencies to transact business and adopt different methods of recording the transactions. It depends on the dealing whether it is made in cash or Credit. If it is in Cash, the companies will have to translate a foreign currency into their home currency, so that they can use it to grab market opportunities with available cash in hand.

And when the sale is made in credit, the company will have to record Bills receivable or Bills payable until the ...

Solution Summary

This response addresses the queries posed in 401 Words, APA References.