The Import of Apple IPads Assembled in Shanghai at a $295

question 21

Multiple Choice

The import of Apple iPads assembled in Shanghai at a $295 wholesale price ($213 cost and $82 profit margin) adds more than it should to the U.S.trade deficit with China because

• A) Chinese assembly labor represents only 47 % of the wholesale cost
• B) the iPad's popularity has triggered an enormous number of unit sales
• C) wholesale prices only count in the trade statistics if final product prices are higher
• D) as with foreign-assembled minivans,most of the subassembly components come from the U.S.
• E) the Chinese yuan is a managed currency

---

Definitions:

Unadjusted Trial Balance

A preliminary report that lists all accounts and their balances before any adjustments are made for accruals, deferrals, and errors.

Proper Order

A systematic arrangement or sequence that things follow which conforms to a set of rules or a standard procedure.

Accounts

Records within financial accounting that track financial transactions of a specific type, such as assets, liabilities, equity, expenses, and revenues.

Trial Balance Totals

The sum of all debit and credit balances in a trial balance, used to verify that the total debits equal total credits in double-entry bookkeeping.