On October 1, 2017, Tile Co., a U.S. company, purchased products from Azulejo, a Portuguese company, with payment due on December 1, 2017. If Tile's 2017 operating income included no foreign exchange gain or loss, the transaction could have
A. Been denominated in U.S. dollars.
B. Resulted in an unusual gain.
C. Generated a foreign exchange gain to be reported as a deferred charge on the balance sheet.
D. Generated a foreign exchange loss to be reported as a separate component of stockholders' equity.
Ans: A. Been denominated in U.S. dollars.
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