Which of the Following Statements Is CORRECT

question 124

Multiple Choice

Which of the following statements is CORRECT?
I. The exchange rate is a price.
II. The exchange rate is different from other prices because it is NOT determined by supply and demand.

• A) only I
• B) only II
• C) I and II
• D) neither I nor II

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decline in its value over time.

Gain or Loss

The financial result of selling an asset for more or less than its purchase price, respectively.

Fixed Asset Turnover

A financial ratio that measures a company's effectiveness in generating revenue from its fixed assets, such as property, plant, and equipment.

Sales

The activities involved in selling goods or services in return for money or other compensation.