Scenario: Exchange Rates the Value of a Euro Goes from US$1.25

question 331

Multiple Choice

Scenario: Exchange Rates The value of a euro goes from US$1.25 to US$1.50. The dollar has:

• A) depreciated.
• B) appreciated.
• C) been revalued.
• D) not been affected for use in international trade.

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Definitions:

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An accounting journal used to record all cash payments made by a company, including expenses and purchases.

Prepaid Insurance

Payments made for insurance coverage that has not yet been incurred, recorded as an asset on the balance sheet.

Supplies Account

An account used in accounting to track the amount spent on supplies that are used in the business operations.