If the Pound-Dollar Exchange Rate Changes from £0

question 441

Multiple Choice

If the pound-dollar exchange rate changes from £0.60 per dollar to £0.65 per dollar, then the pound has ________ against the dollar and the dollar has ________ against the pound.

• A) depreciated; depreciated
• B) appreciated; depreciated
• C) appreciated; appreciated
• D) depreciated; appreciated

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Definitions:

Depreciating Assets

Assets that lose value over time due to use, wear and tear, or obsolescence, such as machinery, vehicles, and buildings.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value on the balance sheet.

Historical Cost

The original monetary value of an asset or investment, as recorded on the financial statements at the time of purchase or acquisition.