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A US company buys merchandise on account from a foreign company denominated in the foreign...

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Accounting

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A US company buys merchandise on account from a foreign company denominated in the foreign currency. The US company records the transaction on their books by converting it to USD using a direct quote. Which of the following is true? Select one: a. If the foreign currency appreciates, a foreign exchange gain will result b. If the foreign currency depreciates, a foreign exchange loss will result c. No foreign exchange gain or loss will result d. If the foreign currency appreciates, a foreign exchange loss will result e. Any gain or loss will be included in comprehensive income

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