Which of the Following Is Also Known as the "Law

question 31

Multiple Choice

Which of the following is also known as the "law of one price"?

• A) Common denominator
• B) dirty float
• C) Purchasing power parity
• D) Flexible exchange rate policy

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Definitions:

Assets

Resources owned or controlled by a business, expected to produce future economic benefits.

Expenses

Costs incurred in the process of earning revenue; examples include rent, utilities, and salaries.

Prepaid Rent Expense

An advance payment for rent that is recorded as an asset on the balance sheet until it is consumed or the rental period elapses.

Contra-Asset

An account that offsets an associated asset account on a company's balance sheet, like an allowance for doubtful accounts reducing accounts receivable.