Exchange Rate Quote Convert the Following Indirect Quote to a Dollar

question 110

Multiple Choice

Exchange Rate Quote Convert the following indirect quote to a dollar direct quote: $1 = 48.210 Philippine Peso

• A) $0.0207
• B) $1.0207
• C) $4.8210
• D) $0.4821

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Definitions:

Retrospective Adjustment

A change applied to the accounting records of prior periods to correct an error or implement a change in accounting principle.

Cumulative Effect

The aggregate impact of an accounting change or policy on a company's financial statements over time.

Average Cost

A method for inventory and cost of goods sold valuation, calculated by dividing the total cost by the number of items.

LIFO Method

Last In, First Out method; an inventory valuation technique where the most recently produced items are recorded as sold first.