The Table Given Below Shows the Export and Import Values

question 20

Multiple Choice

The table given below shows the export and import values of automobiles, pharmaceuticals, and clothing in country A and country B. $$\begin{array} { | c | c | c | } \hline \text { Country A } & \text { Exports (\$billions) } & \text { Imports (\$billions) } \\\hline \text { Automobiles } & 20 & 40 \\\hline \text { Pharmaceuticals } & 30 & 30 \\\hline \text { Clothing } & 40 & 0 \\\hline\end{array}$$ $$\begin{array} { | c | c | c | } \hline \text { Country A } & \text { Exports (\$billions) } & \text { Imports (\$billions) } \\\hline \text { Automobiles } &0 & 20 \\\hline \text { Pharmaceuticals } & 40 & 40 \\\hline \text { Clothing } & 45 & 35 \\\hline\end{array}$$ In country B, the product with the highest intra-industry trade (IIT) share is _____ and the product with the lowest IIT share is _____.

• A)automobiles; pharmaceuticals
• B)pharmaceuticals; automobiles
• C)clothing; automobiles
• D)clothing; pharmaceuticals

Recognize the assumptions and conventions in accounting.

Distinguish the criteria for revenue recognition.

Acknowledge the secondary characteristics of accounting information.

Analyze the importance of representational faithfulness in financial reporting.

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Definitions:

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and thus written off as a bad debt expense.

Idle Cash

Idle cash refers to funds that are not currently invested, earning interest, or being used in operations, often representing missed opportunities.

Treasury Bills

Short-term government securities with maturities ranging from a few days to 52 weeks, often considered risk-free investments.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.