Which of the Following Statements Is True About an International

question 87

Multiple Choice

Which of the following statements is true about an international dollar?

• A) It has the same purchasing power as does the U.S. dollar in the United States.
• B) One international dollar has a greater purchasing power in the United States than in India.
• C) One international dollar has a lower purchasing power in the United States than in India.
• D) It is not possible to compare the purchasing power of one international dollar without information on the prices of goods and services in different countries.

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Definitions:

Petty Cash Account

A modest sum of money maintained readily available for covering various minor outlays instantly.

Establishing

The process of setting up or founding something, such as a new business, system, or set of rules.

Replenishing

The act of refilling or restocking to maintain an adequate level of supplies or inventory.

Voucher System

A control mechanism in accounting that uses vouchers as evidence for transactions before they are posted to accounts, enhancing financial accuracy and integrity.