Which of the Following Statements Is True of the Relationship

Multiple Choice

Which of the following statements is true of the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses?

A) In an export sales, depreciation of the foreign currency causes a foreign exchange gain.
B) In an import purchase, appreciation of the foreign currency causes a foreign exchange gain.
C) In an import purchase, depreciation of the foreign currency causes a foreign exchange loss.
D) In an export sales, appreciation of the foreign currency causes a foreign exchange gain.