An exchange rate
A)is the cash amount received from a customer who takes advantage of a cash discount.
B)is the value of one currency in terms of another currency.
C)seldom varies from one accounting period to the next.
D)is ignored by multinational companies.

Question

Quizplus · Accepted Answer

An exchange rate is the value of one currency in terms of another currency. It reflects the amount of one currency that can be exchanged for a unit of another currency. It is used in international trade and finance to determine the value of foreign investments and to convert financial statements from one currency to another.

An Exchange Rate