Business Studies Multiple Choice Question – 10 January 2022

Lucy went on a business trip to France and came back with two restaurant receipts – one for €25.10 & one for €11.00.

If the exchange rate for the month end of December 2021 was £1 = €1.23, then calculate the combined price in sterling of these two receipts that need to be put in the month-end accounts.

Select ONE answer:

1. £44.40
2. £36.10
3. £29.35
4. £20.40

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – The exchange rate is the price of one currency expressed in terms of another. The total of the spend is €36.10 divided by 1.23 = £29.35
4. Not correct

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