In Ireland, a Pint of Beer Costs 5 Euros

question 23

Multiple Choice

In Ireland, a pint of beer costs 5 euros. In Australia, a pint of beer costs 6 Australian dollars. If the exchange rate is 0.6 euros per Australian dollar, what is the real exchange rate?

• A) 0.5 pints of Irish beer per pint of Australian beer
• B) 0.72 pints of Irish beer per pint of Australian beer
• C) 1.39 pints of Irish beer per pint of Australian beer
• D) 2 pints of Irish beer per pint of Australian beer

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Definitions:

Asset Account

An account on a company's balance sheet that represents tangible or intangible items of value owned by the company.

Liability Account

An accounting record that represents a company's legal debts or obligations that arise during business operations.

Other Accounts

Other accounts generally refer to miscellaneous financial accounts on a company's balance sheet that don't fit into standard categories like assets, liabilities, or equity.

Debit Entry

An accounting entry that results in either an increase in assets or expenses, or a decrease in liabilities or equity, on a company's balance sheet.