The Consolidation of the World Automobile Manufacturing Industry Can Be

question 22

Multiple Choice

The consolidation of the world automobile manufacturing industry can be explained partly by:

• A)The growing market for compact cars
• B)The harshness of international competition
• C)The power of the Japanese manufacturers
• D)The consequence of the escalating costs of new car development, incapable of being borne by smaller players.

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on the price at which willing parties would enter into a transaction.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Debt Investments

Investments in bonds or other debt securities where the investor lends money to an entity in exchange for interest payments and the return of principal.

Accrued Annual Interest

Interest that has been incurred but not yet paid over a year, representing a liability for the borrower.