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Foreign Currency Transactions” Please respond to the following:Evaluate the various types of foreign currency transactions, based on the difficulty in accounting for each type of transaction. Provide examples to support your rationale.Suggest the foreign currency that you believe to have the highest level of risk in today’s business environment, and create an accounting policy that a company could implement to minimize foreign currency transaction losses. Provide support for your rationale.
Solution 1Three types of transactions Spot••• An agreement on price today, with settlement usually two business days later.Settlement = actual delivery of currency for currencyIn the…
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