A Box of Candy Costs 28

question 57

Multiple Choice

A box of candy costs 28.80 Swiss francs in Switzerland and $21.80 in the United States.Assuming that purchasing power parity (PPP) holds,how many Swiss francs are required to purchase one U.S.dollar? Do not round the intermediate calculations and round the final answer to four decimal places.

• A) 1.0701
• B) 1.1097
• C) 1.3211
• D) 1.6382
• E) 1.2286

---

Definitions:

Journalize Transactions

The process of recording financial transactions in the journal as part of the accounting cycle.

Accounts Receivable Turnover

A financial ratio that measures how many times a company can turn its accounts receivable into cash during a period.

Days' Sales in Receivables

A financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.

Dishonored Note

A promissory note that has not been paid by the maker at its maturity date.