Question

Grace Co. had a Chinese yuan payable resulting from imports from China and a Mexican peso receivable resulting from exports to Mexico. Grace recorded foreign exchange losses related to both its yuan payable and peso receivable. Did the foreign currencies increase or decrease in dollar value from the date of the transaction to the settlement date?

Answer 1

Possible options:

A. Yuan increase, Peso increase

B. Yuan increase, Peso decrease

C. Yuan decrease, Peso increase

D. Yuan decrease, Peso decrease

Answer is B

Step-by-step explanation: