Which Statements Are True? If the Exchange Rate Changes from US$1

question 127

Multiple Choice

Which statements are true? If the exchange rate changes from US$1 = C$0.90 to US$1 = C$1.10, then the:
1) Canadian dollar appreciated against the U.S. dollar.
2) Canadian dollar depreciated against the U.S. dollar.
3) U.S. dollar appreciated against the Canadian dollar.
4) U.S. dollar depreciated against the Canadian dollar.

• A) 1 and 3
• B) 1 and 4
• C) 2 and 3
• D) 2 and 4
• E) 3 only

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Definitions:

Cost of Goods Available

The total cost of a company's inventory that is available for sale during a certain period.

Net Purchases

The total purchases minus returns, allowances, and discounts.

Beginning Inventory

The financial value of stock prepared for transaction at the start of a bookkeeping period.

Worksheet

An informal document used within an accounting system to collate all data for financial statements preparation, aiding in the adjustment and closing process.