A Foreign Currency Is Said to Have Appreciated Against the Dollar

question 13

Multiple Choice

A foreign currency is said to have appreciated against the dollar when:

• A)the dollar price of the currency has increased
• B)the foreign currency price of the dollar has increased
• C)the exchange rate of both currencies with respect to the euro has increased
• D)the exchange rate for both currencies with respect to a third currency has decreased

Record payment transactions, including discounts for early payment.

Know how to record the payment of sales tax to the state.

Understand the difference between cash and accrual accounting in the context of sales.

Apply accounting concepts to record business investments in the company.

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Definitions:

Surplus

The situation in which the quantity of a good or service supplied exceeds the quantity demanded at the existing price.

Price Ceiling

A price ceiling is a legal maximum price set by the government for certain goods or services to prevent prices from becoming prohibitively high.

Price Floor

A government-imposed minimum price charged on a product, below which that particular product cannot be supplied to the market.

Shortage

A scenario in which the market's need for a service or product surpasses its availability.