If a Box of Swiss Chocolate Priced at 100 Francs

question 122

Multiple Choice

If a box of Swiss chocolate priced at 100 francs can be purchased for $50, the exchange rate is:

• A) 0.50 francs per dollar.
• B) 4.00 francs per dollar.
• C) 0.50 dollars per franc.
• D) none of the above.

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Definitions:

Accounts Payable

Liabilities representing amounts owed by a company to suppliers for goods and services received but not yet paid for.

Credit Entries

Accounting entries that increase liabilities or equity or decrease assets, reflecting gains to a company's balance sheet.

Expense Account

An income statement account that represents the cost of goods sold or services provided to generate revenue.

Credit Balance

A credit balance occurs when the total credits in an account exceed the debits, often seen in liability, revenue, and equity accounts.