-Refer to Table 11

question 19

Multiple Choice

-Refer to Table 11.8 to answer this question.Which of the following statements is correct?

• A)The Canadian dollar has appreciated and the Japanese yen has depreciated.
• B)The Canadian dollar has depreciated and the Japanese yen has appreciated.
• C)The Japanese yen is now worth less in terms of the Canadian dollar.
• D)The Canadian dollar is now worth more in terms of the Japanese yen.

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Definitions:

Capital Lease

A lease agreement that is classified as a purchase of an asset for accounting purposes, as it meets specific criteria set out in accounting standards.

Incremental Borrowing Rate

The incremental borrowing rate is the interest rate a lessee would have to pay to borrow funds on a secured basis over a similar term, in a similar currency, to purchase or lease a similar asset.

Capital Lease

A lease agreement that is classified as a purchase by the lessee for accounting purposes, effectively treating the leased asset as owned property.

Executory Costs

Costs related to the unperformed obligations under a lease, typically including insurance, maintenance, and taxes.