A company that has foreign currency transactions

A company that has foreign currency transactions will have foreign currency receivables and/or 
foreign currency payables. If the direct exchange rate decreases while a company has a foreign 
currency payable, the company will record a gain. Assume that when I was explaining this 
concept in class, a student did not quite understand it. Write a short, simple explanation that 
would best explain this concept to this student. Use a memo format.
Please provide a complete, easy-to-understand explanation as concisely as possible. Your 
explanation should not exceed two short paragraphs. As this concept is not very difficult, don’t 
make your explanation complicated. Please use your own words rather than simply quoting or 
paraphrasing another source.