The Nominal Exchange Rate Between the Canada Dollar and the Japanese

question 89

Multiple Choice

The nominal exchange rate between the Canada dollar and the Japanese yen is the:

• A) number of yen you can get for lending one dollar in Japan for one year.
• B) number of yen you can get for one dollar.
• C) price of Canadian goods divided by the price of Japanese goods.
• D) price of Japanese goods divided by the price of Canadian goods.

---

Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders but instead reinvested in the business or used to pay off debt.

Insurance Expense

The cost incurred by an entity to obtain insurance coverage, recognized as an expense over the period the insurance provides coverage.

Post-Closing Trial Balance

A list of all accounts and their balances after closing entries are made, used to check the balance of debits and credits.

Fees Earned

Income received from providing services, typically recorded when the service is rendered, not when the payment is received.