A US Company Sells Merchandise to Customers in Hong Kong

Multiple Choice

A U.S. company sells merchandise to customers in Hong Kong. The merchandise is priced in Hong Kong dollars, and customers generally take 15 days to pay for the merchandise. The U.S. company's sales revenue for these sales, reported on its income statement, is expressed in U.S. dollars converted at:

A) The rate when the company received payment from the customer
B) The rate when the sales were made
C) The rate at the end of the accounting year
D) The rate when the company received the purchase order from the customer