Which of the Following Is True

question 216

Multiple Choice

Which of the following is true?

• A)If the Australian dollar depreciates, the Australian trade deficit decreases, since Australian products become cheaper to foreigners.
• B)If the Australian dollar depreciates, the Australian trade deficit decreases, since Australian products become more expensive to foreigners.
• C)If the Australian dollar depreciates, the Australian trade deficit increases, since Australian products become more expensive to foreigners.
• D)If the Australian dollar appreciates, the Australian trade deficit decreases, since Australian products become cheaper to foreigners.
• E)If the Australian dollar appreciates, the Australian trade deficit decreases, since Australian products become more expensive to foreigners.

---

Definitions:

Revenue Recognition

The accounting principle that revenue should be reported at the time goods are sold or services are rendered, regardless of when the payment is received.

Expense Recognition

The accounting principle that matches incurred expenses to the revenue they generate, recognizing expenses in the same period as the related revenues.

Revenue Recognition Principle

The accounting principle that revenue should be recorded when earned, regardless of when payment is received.

Services Performed

The actions or tasks provided by a business to its customers for a fee.