Use the Following Figure to Answer the Question

question 20

Multiple Choice

Use the following figure to answer the question. Which terrestrial habitat type in the figure makes available the most net biomass tissue per unit area available for consumers?

• A) tropical wet forest
• B) open ocean
• C) algal beds and reefs
• D) wetlands

Understand the concept of control accounts and their relevance to subsidiary ledgers.

Differentiate between transactions that should be recorded in general and special journals.

Identify the purposes and types of accounting journals.

Understand the procedures for recording transactions in special and general journals.

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Definitions:

M&M Proposition II

A theory proposing that the cost of equity for a leveraged firm increases linearly with its level of debt, holding the cost of debt constant.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and is used in calculating the weighted average cost of capital.

Debt/Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to gauge financial health and risk.

Required Rate of Return

The lowest yearly percentage gain from an investment required to attract individuals or businesses to invest in a specific security or venture.