Solve the Problem. -Recently, One U.S. Dollar Was Worth About 0.6158 British Pounds

question 27

Multiple Choice

Solve the problem.
-Recently, one U.S. dollar was worth about 0.6158 British pounds. How much would a car have cost in U.S. dollars that cost 8930 British pounds?

• A)$4384.63
• B)$14,501.46
• C)$16,817.33
• D)$5499.09

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.

Percentage Analysis

A financial analysis technique that evaluates the proportion or percentage change of individual components in financial statements over time.

Adjusting Entry

Accounting records created at the closing of a fiscal period to distribute expenses and revenues to the time they were truly incurred.

General Journal

A basic accounting ledger used to record all types of accounting transactions before they are transferred to specific accounts in the general ledger.