Assume That Two Countries (Home and Foreign) Each Produce Two

question 61

Multiple Choice

Assume that two countries (Home and Foreign) each produce two goods
(corn and wheat) under constant cost production.Home produces 0.5
Ton of corn or 1 ton of wheat with a day of labor.Without trade (in
Autarky) , Home's daily production is 20 tons of wheat and 10 tons of
Corn.Suppose that Home completely specializes, and it consumes 20
Tons of wheat after it begins trading with Foreign.Home trades with
Foreign at a 1­to­1 ratio of corn for wheat.How many tons of corn does
It consume when it trades with Foreign?

• A)10 tons of corn
• B)20 tons of corn
• C)30 tons of corn
• D)40 tons of corn

Execute segment reporting tests, including the asset test, and determine reportable segments.

Compute cost of goods sold under the LIFO inventory costing method.

Prepare journal entries for specified accounting transactions.

Explain the requirements and purpose of quarterly financial statements for publicly traded companies.

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Definitions:

Annual Interest

The amount of interest due over the course of a year as a result of borrowing funds or investing, expressed typically as a percentage of the principal.

Accumulate

The process of gathering or amassing items, such as profits, expenses, or information, over a period of time.

Present Value

The present worth of a future amount of money or series of cash flows, taking into account a certain rate of return.

Annuity

An economic product that delivers a constant payment stream to an individual, mainly used as a means of livelihood for people who are retired.