An Indirect Exchange Rate Can Be Converted to a Direct

question 8

Multiple Choice

An indirect exchange rate can be converted to a direct exchange rate by:

• A) dividing the indirect rate by number of U.S. dollars required to purchase one unit of the other currency.
• B) dividing the indirect rate by 100.
• C) multiplying the indirect rate by the spot rate.
• D) taking the inverse of the indirect rate.

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Definitions:

Asset Expires

Refers to the expiration or depletion of the useful life or service period of an asset, at which point it may no longer be productive or useful for the business.

Revenue

Revenue is the total amount of money that a company receives from its activities, mainly from sales of products or services, before any expenses are subtracted.

Original Cost

The purchase price of an asset or service, including installation fees, transportation charges, and any other expenses necessary to make the asset operational.

Depreciation Expense

This refers to the allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up during an accounting period.