Refer to the Information Provided in Table 20 -Refer to Table 20

question 114

Multiple Choice

Refer to the information provided in Table 20.2 below to answer the question(s) that follow.
Table 20.2 $$\begin{array} { c c c c } \hline & \text { China } &\quad\quad\quad\quad\quad\quad { \text { Thailand } } \\\text { Tractors } & \text { Motorcycles } & \text { Tractors } & \text { Motorcycles } \\\hline 0 & 300 & 0 & 300 \\5 & 250 & 5 & 225 \\10 & 200 & 10 & 150 \\15 & 150 & 15 & 75 \\20 & 100 & 20 & 0 \\25 & 50 & - & - \\30 & 0 & - & - \\\hline\end{array}$$
-Refer to Table 20.2. Which terms of trade benefits both countries?

• A) 1 tractor for 10 motorcycles
• B) 1 tractor for 12.5 motorcycles
• C) 1 motorcycle for 10 tractors
• D) 1 motorcycle for 1/5 of a tractor

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Definitions:

Loans

Loans refer to borrowed money that must be repaid with interest by the borrower to the lender, used typically for personal, business, or education purposes.

Allowance for Doubtful Accounts

A contra-asset account that reduces total accounts receivable to reflect the estimated amount of credit sales that may not be collected.

Credit Balance

A positive balance within an account, indicating that a company or individual has received more in deposits than it has spent.

Credit Sales

Sales made by a business that do not require immediate payment, but rather are paid for by the buyer at a later date.