Which of the Following Is Not Relevant When Calculating the Budget

question 74

Multiple Choice

Which of the following is not relevant when calculating the budget line?

• A)the price of good X
• B)income
• C)the price of good Y
• D)preferences
• E)the relative price of good X in terms of good Y

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Definitions:

Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much one currency can be exchanged for another currency.

Functional Currency

The primary currency of the primary economic environment in which the entity operates, usually the local currency or the currency of the primary sales market.

Current Rate Method

A method of foreign currency translation where assets and liabilities are converted at the current exchange rate.

U.S. GAAP

Stands for United States Generally Accepted Accounting Principles, which are the accounting standards used by companies in the United States to prepare their financial statements.