The Decline in the Value of the Dollar from 1985

question 120

Multiple Choice

The decline in the value of the dollar from 1985 to 1988 was beneficial to

• A)American tourists travelling to Europe.
• B)firms importing goods into America.
• C)American exporting businesses.
• D)foreigners holding U.S.government bonds.

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Definitions:

Gain on Sale

Gain on sale refers to the profit made from selling an asset for more than its book value.

Indirect Method

A method for creating the cash flow statement by modifying net income according to non-cash activities and fluctuations in working capital.

Operating Activities

Activities directly related to the principal revenue-producing activities of an entity, detailed in the cash flow statement.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life, reflecting its consumption, expiration, or obsolescence.