Which of the Following Statements Is an Example of a Global

question 28

Multiple Choice

Which of the following statements is an example of a global trend?

• A) The Federal Reserve announces that it will decrease the interest rate charged to banks.
• B) Congress passes legislation that increases the tax rates on corporations.
• C) A new computer chip is developed that will allow for miniaturization of many electronic devices.
• D) The European Union declares an increase in tariffs on all agricultural goods.

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Definitions:

Physical Count

A method used in inventory management to ensure the actual number of physical goods matches the recorded inventory.

Inventory

The raw materials, work-in-progress goods, and finished products that a business holds for the purpose of sale in the ordinary course of business.

Single-Step Income Statement

A simplified income statement that calculates net income or loss by subtracting total expenses from total revenues in one step.

Multiple-Step

An income statement format that segregates operating revenues and expenses from non-operating revenues, expenses, gains, and losses.