45.

Concerning importing and exporting transactions, which of the following statements is

false?
a. Gains and losses on adjustments to foreign currency receivables and payables may be
reported net in the income statement.
b. Gains and losses on adjustments to foreign currency receivables and payables are
unrealized in nature.
c. When a domestic company has a gain or loss as a result of adjusting a
foreign currency receivable or payable, the foreign company will have the
opposite result.
d. FX transaction gains are taxable when realized.
e. None of the above.

46. À foreign currency transaction loss occurs on an open-account purchase from a foreign
supplier denominated in local currency units (LCU) of the foreign supplier's country if the:
a. Buying spot rate for the LCU decreases between the purchase date and the payment date
b. Selling spot rate for the LCU decreases between the purchase date and the payment date
c. Buying spot rate for the LCU increases between the purchase date and the payment date
d. Selling spot rate for the CU increases between the purchase date and the payment date

47. A foreign currency transaction gain or loss is:

a. A change in the exchange rate quoted by a foreign currency dealer
b. A term synonymous with translation of a foreign currency to pesos
c. The difference between the recorded pesos amount of a trade account
receivable or a trade account payable denominated in a foreign currency
and the amount of pesos ultimately received or paid
d. A change from the current/noncurrent method to the monetary/ nonmonetary method of
remeasuring a foreign investee's financial statements to the pesos functional currency