What concept underlies the two-transaction perspective in accounting for foreign currency transactions?     a. treats imports and exports as two separate transactions.     b. Foreign Exchange Gains and Losses.     c. The Effects of Changes in the world Economy.     d. Treats the export sale and the subsequent collection of cash as two separate transactions.

When are foreign currency transaction gains or losses required to be recognized in the financial statements, how are they to be disclosed and where in the financial statements?

Accounting for Foreign Currency Transactions:   Accounting for foreign currency transactions involves recording and reporting financial transactions denominated in a currency other than the entity's functional currency. Here are the key steps involved in handling such transactions:   **1. Identifying Foreign Currency Transactions:   Definition: Foreign currency transactions occur when a business entity conducts financial transactions, such as sales, purchases, or investments, in a currency different from its functional currency.   Examples: Buying goods from a foreign supplier, selling products to overseas customers, or borrowing funds in a foreign currency.   **2. Determining the Functional Currency:   Primary Currency: Each business entity designates a functional currency, which is the primary currency used in its day-to-day operations and financial reporting.   Factors Considered: Factors such as the location of the entity's primary economic activities, the currency in…

2 - Which account can a business use to monitor foreign currency transactions in foreign currency?I. Off-balance sheet account,II. Foreign currency deposit accounts,III. Foreign Currency SafeA) II-IIIB) Solo IIC) I-IID) I-II-IIIE) Only I