Question: Rush records its transactions in U . S . dollars. A purchase of goods resulted in a payable denominated in GB pounds, and a sale

Rush records its transactions in U

.

.

dollars. A purchase of goods resulted in a payable denominated in GB pounds, and a sale of goods resulted in a receivable denominated in Euros.

Rush recorded a foreign exchange transaction gain on settlement of the GB pound payable and an exchange transaction loss on the collection of the Euros receivable.

Did the US dollar weaken or strengthen against those respective currencies?

US Dollar Against the GB Pound

.

Weakened

.

Strengthened

.

Weakened

.

Strengthened

US Dollar Against the Euro

Strengthened

Weakened

)

) B

) C

) D

Rush records its transactions in U.S. dollars. A purchase of goods

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