Mercantilist Theory Held That

question 17

Multiple Choice

Mercantilist theory held that

• A) colonies can help the mother country become self-sufficient by providing it with valuable raw materials.
• B) there should be an equal balance of imports and exports.
• C) government should not interfere in the economy.
• D) overseas colonies were an unnecessary burden on a nation's natural resources.

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Definitions:

Average Total Assets

An indicator of a company's financial health, calculated by adding the beginning and ending total assets for a period and dividing by two.

Managerial Accounting

The practice of identifying, measuring, analyzing, and interpreting accounting information to help managers make informed business decisions.

Internal Users

Employees or departments within an organization who use financial and operational information for decision-making and management purposes.

Measurement Principle

The accounting principle that determines the criteria under which financial elements are quantified in the financial statements.