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At the beginning of the year,the total owner's equity of Alpha Technologies was $90,000.The revenues and expenses were $80,000 and $40,000,respectively.The owner did not make and contributions or withdrawals during the year.The total owner's equity at the end of the year will amount to $120,000.
Local Currency
The currency that is legally accepted within a country and typically used for all financial transactions within that geographical boundary.
Flexible Exchange Rates
A system where the value of a currency is determined by the foreign exchange market, depending on the supply and demand for that currency.
International Monetary Reserves
Assets that central banks and monetary authorities hold in foreign currencies, including foreign banknotes, bank deposits, bonds, treasury bills, and other government securities, to back its liabilities.
Demand for Pounds
Refers to the desire or requirement for British pounds in the foreign exchange market, usually driven by trade, investment, or speculation needs.
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