Northland Corporation recorded £1,000,000 in Accounts Receivable for sales to customers in the United Kingdom and recorded Accounts Payable of 2,000,000 yuan for product purchased from China. If Northland recorded a foreign currency exchange loss on its receivables and a foreign currency gain on its payables, what must have happened to each currency?
A. Yuan appreciated, Pound depreciated
B. Yuan depreciated, Pound appreciated
C. Yuan appreciated, Pound appreciated
D. Yuan depreciated, Pound depreciated
Answer:D
Northland Corporation recorded £1,000,000 in Accounts Receivable for sales to customers in the United Kingdom and recorded Accounts Payable of 2,000,000 yuan for product purchased from China. If Northland recorded a foreign currency exchange loss on its receivables and a foreign currency gain on its payables, what must have happened to each currency?
A. Yuan appreciated, Pound depreciated B. Yuan depreciated, Pound appreciated C. Yuan appreciated, Pound appreciated D. Yuan depreciated, Pound depreciated