Chico Company Experienced an Accounting Event That Affected Its Financial

question 45

Multiple Choice

Chico Company experienced an accounting event that affected its financial statements as indicated below:

Which of the following accounting events could have caused these effects on the elements of Chico's financial statements?

• A)Issued common stock
• B)Earned cash revenue
• C)Borrowed money from a bank
• D)Paid a cash dividend

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Definitions:

Dollar Appreciate

Refers to the increase in value of the US dollar against other currencies, making foreign goods and services cheaper for US consumers but US exports more expensive for foreign buyers.

Dollar Depreciate

A decline in the value of the U.S. dollar relative to other currencies, resulting in decreased purchasing power internationally.

Weaker Peso

A situation in which the value of the Mexican Peso decreases relative to other currencies.

US Exports

Goods or services produced within the United States and sold to buyers in other countries.