If the Exchange Rate Has Been $1

question 222

Multiple Choice

If the exchange rate has been $1.50 per British pound but now falls to $1.25 per British pound, there will be

• A)more U.S.imports from Great Britain because the price of pounds has fallen
• B)more exports to Great Britain because the price of pounds has risen
• C)fewer exports to Great Britain because the price of the pound has risen
• D)more U.S.exports to Great Britain since the price of the dollar has fallen
• E)no change in either exports or imports

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Definitions:

Account Titles & Descriptions

Names and explanations assigned to individual accounts in the financial statements, reflecting the nature and type of transaction.

Balance

A balance in financial terms refers to the amount of money or value remaining in an account, or the equality between the sum of debits and credits in an accounting record.

Accounts Receivable

Funds that customers owe a company for goods or services that have already been delivered or utilized, but payment has not yet been received.

Fees Earned

Income earned by a company for services provided to clients, usually recorded as revenue in the income statement.