Company buys merchandise on credit

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A U.S. company buys merchandise on credit (denominated in U.S. dollars) from a European company. For the U.S. company, which of the following statements is true?

If the euro appreciates, a foreign exchange gain will occur.

If the euro depreciates, a foreign exchange gain will occur.

No foreign exchange gain or loss will occur.

If the euro appreciates, a foreign exchange loss will occur.

Reference no: EM131346267

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