An Increase in the U

question 187

Multiple Choice

An increase in the U.S.demand for foreign exchange will

• A)decrease the price of foreign exchange
• B)decrease the value of the U.S.dollar
• C)increase the value of the U.S.dollar
• D)make foreign goods less expensive in U.S.dollars
• E)make U.S.goods more expensive in foreign exchange

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Definitions:

Accounting Cycle

The process used by entities to analyze and record transactions, adjust the records at the end of the period, prepare financial statements, and prepare the records for the next cycle.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made.

Financial Statements

Consolidated records of the financial activities of a business, entity, or individual, including the balance sheet, income statement, and cash flow statement.

Temporary Accounts

Income statement (and sometimes Dividends Declared) accounts that are closed to Retained Earnings at the end of the accounting period.