An Increase in the U

question 187

Multiple Choice

An increase in the U.S.demand for foreign exchange will

• A)decrease the price of foreign exchange
• B)decrease the value of the U.S.dollar
• C)increase the value of the U.S.dollar
• D)make foreign goods less expensive in U.S.dollars
• E)make U.S.goods more expensive in foreign exchange

---

Definitions:

Average Cost Method

An inventory costing method wherein the cost of goods sold and remaining inventory is valued at the average cost of all inventory items purchased during a period.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated either by a physical count or accounting estimation methods.

Perpetual Inventory System

An accounting system that continuously updates inventory records for each purchase and sale.

Inventory On September 30

The stock of goods a company has available for sale or used in production as recorded on September 30th.