Which Statement Is Correct

question 52

Multiple Choice

Which statement is correct?

• A)A security that meets the criteria of cash equivalent must be classified as cash such.
• B)A security that meets the criteria of cash equivalent can be classified as cash such.
• C)A security that meets the criteria of cash equivalent must be presented as cash such.
• D)A security that meets the criteria of cash equivalent must be cash.

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Definitions:

Absolute Advantage

The ability of a country, company, or individual to produce a good or service more efficiently than competitors using the same amount of resources.

Comparative Advantage

The ability of an individual, company, or country to produce a particular good or service at a lower marginal and opportunity cost over another.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower marginal cost and opportunity cost than its competitors.

Produce More

The act of increasing the output of goods or services, typically in response to higher demand or improved efficiency.