Shore Co. records its transactions in US dollars. A sale of
goods resulted in a receivable denominated in Japanese yen, and
a purchase of goods resulted in a payable denominated in euros.
Shore recorded a foreign exchange transaction gain on collection
of the receivable and an exchange transaction loss on settlement
of the payable. The exchange rates are expressed as so many
units of foreign currency to one dollar. Did the number of foreign
currency units exchangeable for a dollar increase or decrease
between the contract and settlement dates?
Yen exchangeable for $1
Euros exchangeable for $1