Transcribed Image Text
5) For each of the following situations, select the best answerconcerning accounting for foreign currency transactions:(G) Results in a foreign exchange gain.(L) Results in a foreign exchange loss.(N) No foreign exchange gain or loss._____1. Export sale by a U.S. company denominated in dollars,foreign currency of buyer appreciates._____2. Export sale by a U.S. company denominated in foreigncurrency, foreign currency of buyer appreciates._____3. Import purchase by a U.S. company denominated in foreigncurrency, foreign currency of buyer appreciates. _____4. Importpurchase by a U.S. company denominated in dollars, foreign currencyof buyer appreciates._____5. Import purchase by a U.S. company denominated in foreigncurrency, foreign currency of buyer depreciates. _____6. Importpurchase by a U.S. company denominated in dollars, foreign currencyof buyer depreciates._____7. Export sale by a U.S. company denominated in dollars,foreign currency of buyer depreciates._____8. Export sale by a U.S. company denominated in foreigncurrency, foreign currency of buyer depreciates.