From the U

question 19

Multiple Choice

From the U.S.perspective, a drop in the price of foreign exchange means that

• A)fewer U.S.dollars are needed to purchase foreign currency
• B)more U.S.dollars are needed to purchase foreign currency
• C)worldwide, imports will become more expensive
• D)worldwide, exports will become cheaper
• E)transaction costs on international markets will decrease

---

Definitions:

Reversing Entries

Accounting entries made at the beginning of a new period to negate the effects of adjustments made at the end of the previous period.

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the end of the accounting period.

Wages Payable

Liabilities representing the amounts owed to employees for work performed but not yet paid.

Post-Closing Trial Balance

A list of all accounts remaining after closing entries have been made, showing the balances ready for the next accounting period.