If the Foreign Currency Exchange Rate Between Germany and the US

question 42

True/False

If the foreign currency exchange rate between Germany and the US was €1.00 = $0.55 on 1 October 2014 and moved to be €1.00 = $0.60 one month later,the euro has decreased relative to the foreign currency.

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Definitions:

Accounting Principles

The standardized rules and guidelines that companies are required to follow when reporting financial data, ensuring consistency, reliability, and comparability of financial statements.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the owners' share of the company’s assets.

Owner's Investments

Funds or assets contributed by the owner(s) to the business to increase its capital.

Expenses

Costs incurred by a business in the process of earning revenue, such as rent, salaries, and utility bills.