Table 3-3 -Refer to Table 3-3

question 136

Multiple Choice

Table 3-3
$\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\\\hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \\\hline \text { US } & 40 & 160 & 60 & 15 \\\hline \text { Europe } & 50 & 150 & 48 & 16 \\\hline\end{array}$
-Refer to Table 3-3.The opportunity cost of one car for the US is:

• A)four aeroplanes
• B)three aeroplanes
• C)1/3 aeroplane
• D)1/4 aeroplane

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Definitions:

Sale Of Investments

The process of selling investment assets such as stocks, bonds, or real estate, typically to generate cash or realize gains.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, representing the asset's consumption or the loss of its value over time.

Net Income

The total earnings of a company after subtracting all expenses from revenue, including taxes and operating costs, often referred to as the bottom line.

Indirect Method

The indirect method is a widely used approach for preparing the cash flow statement, where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.