A US-Based Company Sells Merchandise on Account to a Company in in Mexico.The

Multiple Choice

A U.S.-based company sells merchandise on account to a company in Mexico.The Mexican company wants to pay for the merchandise in pesos.If the peso decreases in value relative to the dollar,the seller will record a ________.We say the peso ________ relative to the dollar.

A) Foreign Currency Transaction Gain; weakens
B) Foreign Currency Transaction Gain; strengthens
C) Foreign Currency Transaction Loss; weakens
D) Foreign Currency Transaction Loss; strengthens