Use the Figure Below to Answer the Following Questions

question 12

Multiple Choice

Use the figure below to answer the following questions.
Table 2.3.1
The planets of Vulcan and Romulus each produce goods X and Y.
The following table gives points on their production possibilities frontiers.
-Refer to Table 2.3.1.Which one of the following is true?

• A)Romulus has a comparative advantage in the production of X.
• B)Romulus has both an absolute advantage and a comparative advantage in the production of X.
• C)Vulcan should specialize in the production of X.
• D)Vulcan has a comparative advantage in the production of X.
• E)Romulus has both an absolute advantage and a comparative advantage in the production of Y.

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Definitions:

Aging of Accounts Receivable

A method to manage and review accounts receivable based on the length of time invoices have been outstanding, typically to identify and act on overdue payments.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated portion of accounts receivable that may not be collectible.

Uncollectible Accounts

Accounts receivable that are unlikely to be recovered and are considered bad debts.

Accounts Receivable Turnover

A financial ratio that measures how often a company collects its average accounts receivable, indicating the efficiency of credit and collections policies.