Assume That the Danish Krone Price of One British Pound

question 55

Multiple Choice

Assume that the Danish krone price of one British pound is DKr10.5.If it costs 45 pounds per day to rent a car in London and DKr480.5 to do so in Copenhagen, which of the following is true?

• A)The cost of renting a car is the same in both cities.
• B)The cost of renting a car is DKr8 less in London.
• C)The cost of renting a car is DKr45.76 less in London.
• D)The cost of renting a car is DKr10.67 more in Copenhagen.
• E)The cost of renting a car is DKr4.28 less in London.

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Definitions:

Balance Sheet

A Balance Sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, offering a snapshot of its financial condition.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company.

Return On Sales

A ratio used to evaluate a company's operational efficiency, calculated by dividing operating profit by sales revenue.

Accrual Accounting

A financial recording approach that documents incomes and expenditures at the time they happen, irrespective of the actual cash flow.