Lee Earns More Than Does Pat

question 102

Multiple Choice

Lee earns more than does Pat. Which of the following can explain why?

• A) Pat is discriminated against.
• B) Lee has a greater degree of specialisation in earning an income.
• C) Lee has more human capital.
• D) All of the above could be factors leading to the wage difference.

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Definitions:

Cross-Footing

A bookkeeping process that involves checking the mathematical accuracy of figures in financial statements by ensuring that sums of columns and rows respectively match.

Cash Receipts Journal

A specialized accounting journal used to record all receipts of cash.

Equality

In financial terms, refers to the state where two values, amounts, or figures are of the same value or balance each other out.

One-Column Purchases Journal

A simplified accounting ledger that records only the purchases of goods and services in a single column, typically for small businesses or specific types of transactions.