What Is the Percentage Change in Price for an American

question 30

Multiple Choice

What is the percentage change in price for an American importer of Indian sitar music cassettes if the Indian rupee/U.S.dollar exchange rate goes from 12 rps./$ to 14rps./$ and the price of a cassette is 50 rupees?

• A) −16.7%
• B) −14.4%
• C) +20.2%
• D) +16.5%
• E) +14.2%

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Definitions:

Perpetual System

An inventory system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period for accurate financial reporting.

Sales Revenue Section

The part of a financial statement that details the income generated from sales of goods or services before any costs or expenses are subtracted.

Merchandising Company

A business that purchases goods wholesale and sells them retail; primarily involved in the selling of merchandise.