If the Price of a Sofa Is $800 in the U.S.and

question 39

Multiple Choice

If the price of a sofa is $800 in the U.S.and 2400 pesos in Argentina,and the exchange rate is 4 pesos per dollar,what is the real exchange rate?

• A)3
• B)4/3
• C)3/4
• D)None of the above is correct.

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Definitions:

Transactions

The exchanges or transfers of goods, services, or funds that result in changes to the financial position of a business.

Journalize

The process of recording financial transactions in a company's journal, marking the first step in the accounting cycle.

Fiscal Year

A 12-month period that companies use for accounting purposes and preparing financial reports, which may or may not align with the calendar year.

Quick Ratio

A liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.