Read the direction of the rate.

The same pair of currency names can be expressed in opposite directions.

01

Start with the evidence

Write the rate as units received per one unit of the source currency. Check that the operation you plan to use matches that wording.

02

Work through the example

At a fictional USD1.20 per EUR rate, EUR50 multiplied by 1.20 gives USD60. Dividing by 1.20 instead would answer a different conversion question and produce the wrong result for these inputs.

03

Make the next step clear

Keep the written rate direction beside the formula in the review note. If a source presents the inverse rate, clarify it before comparing or calculating amounts.

04

Keep the source context

All exchange rates in these worked examples are fictional arithmetic inputs, not current market rates. A business must use the source, date and method appropriate to its own review and approved accounting process. Keep original currency amounts available throughout.

01Keep the source02Check the context03Choose the next step

Make more room for your life.Powerful accounting, with an AI agent by your side.