If the Exchange Rate Between the U

question 269

Multiple Choice

If the exchange rate between the U.S. dollar and the Japanese yen is $1 = 200 yen, then the dollar price of yen is

• A) $0.005.
• B) $0.05.
• C) $0.50.
• D) $5.

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Definitions:

Expense Account

An accounting ledger that tracks the outflow of economic resources or increase in liabilities, resulting in a decrease in equity.

Retained Earnings

The accumulated portion of net earnings not distributed to shareholders but reinvested in the business.

Shareholders' Equity

The ownership interest of shareholders in a company, calculated as total assets minus total liabilities.

Revenues

Income generated from normal business operations and includes discounts and deductions for returned merchandise.