A Decrease in the Direct Rate of US$1 to A

question 7

Multiple Choice

A decrease in the direct rate of US$1 to A$# results in:

• A) an increase in US$ amount for a payable in A$.
• B) a decrease in A$ amount for a payable in US$.
• C) an exchange loss.
• D) an increase in A$ amount for receivable in US$.

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Definitions:

Retail Pricing Strategy

Approaches and tactics a retailer uses to set the prices of its products or services to maximize profitability.

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or store.

Wedding Dresses

Specialized attire worn by brides during wedding ceremonies, varying widely in style, color, and design according to cultural and personal preferences.

Markdowns

Reductions from the original selling price of goods, often used to clear inventory or stimulate sales.