An Increase in the Official Value of a Currency in a Fixed-Exchange-Rate

question 177

Multiple Choice

An increase in the official value of a currency in a fixed-exchange-rate system is called a(n)

• A) revaluation.
• B) devaluation.
• C) appreciation.
• D) depreciation.
• E) overvaluation.

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Definitions:

Expensed

Expensed is the recognition of a cost as an expense on the income statement in the period in which it is incurred, rather than capitalizing it as part of an asset.

Units-of-production Method

a depreciation technique that allocates the cost of an asset over its useful life based on the number of units it produces.

Straight-line Method

A method of calculating depreciation of an asset, which spreads the cost evenly over its useful life.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life.