A Weaker U

question 308

Multiple Choice

A weaker U.S. dollar in world exchange markets means that

• A) a dollar buys more units of foreign currency than it could before.
• B) a dollar buys less units of foreign currency than it could before.
• C) a dollar buys the same amount of foreign currency than it could before, with gold backing up the value of the dollar.
• D) foreigners buy the dollars that they have.

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Definitions:

Owner's Capital Account

Represents the total equity or investment that the owner has in the business, including initial investment and subsequent profits or losses.

Balance

The amount of money or value remaining in an account after accounting for debits and credits.

Income Summary

An account used in the closing process that summarizes the revenue and expenses for a specific accounting period.

Expenses Accounts

Accounts that track money spent or costs incurred in a company’s operations to generate revenue.