Table 22-2
Three Longtime Friends-Stephanie, Stella, and Lydia-Are Deciding How

question 107

Multiple Choice

Table 22-2
Three longtime friends-Stephanie, Stella, and Lydia-are deciding how they will spend their Sunday afternoon. They all agree that they should do one of the three things: go to a play, play baseball, or go to a soccer game. They also agree that they will have two pairwise votes to determine how to spend their afternoon, with the majority determining the outcome on each vote. The first, second, and third choices for each person are as indicated in the following table.
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$$\begin{array} { | c | c | c | c | } \hline & \text { Stephanie } & \text { Stella } & \text { Lydia } \\\hline \text { First choice } & \text { soccer game } & \text { baseball } & \text { play } \\\hline \text { Second choice } & \text { baseball } & \text { play } & \text { soccer game } \\\hline \text { Third choice } & \text { play } & \text { soccer game } & \text { baseball } \\\hline\end{array}$$
-Refer to Table 22-2. If (1) the first vote pits "soccer game" against "play," and (2) the second vote pits "baseball" against the winner of the first vote, then the outcome is as follows:

• A)"Soccer game" wins the first vote and "soccer game" wins the second vote, so they go to a soccer game.
• B)"Soccer game" wins the first vote and "baseball" wins the second vote, so they play baseball.
• C)"Play" wins the first vote and "play" wins the second vote, so they go to a soccer game.
• D)"Play" wins the first vote and "baseball" wins the second vote, so they play baseball.

Analyze the effects of sales, expenses, and transactions on net income, gross profit, and stockholders' equity.

Understand cash flow statement components and what constitutes an operating activity.

Calculate and understand stockholders' equity and how transactions affect its components.

Comprehend differences between US GAAP and IFRS in terms of inventory valuation, common stock, and asset reporting.

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Definitions:

Religious Characteristics

Traits or features that mark various beliefs, practices, rituals, and organizational forms of religious institutions.

What Is to Be Done

A political pamphlet written by Lenin in 1902 discussing the role of the vanguard party, workers, and the revolution.

Lenin

A Russian revolutionary leader, political theorist, and founder of the Soviet Union, who played a key role in the Bolshevik Revolution of 1917.

Revolutionary Party

A political party that seeks to implement radical changes in society and governance, often through revolutionary means.