Table 3-2 -According to Table 3-2:
A)Lee and John Both Could Benefit

question 11

Multiple Choice

Table 3-2
$\begin{array}{|c|c|c|c|c|}\hline&\text { Labour hours needed to produce one unit of: }&&\text { Amount produced in } 60 \text { hours: }\\\hline & \text { Butter (kg) } & \text { Butter (kg } & \text { Rice (kg) } & \text { Rice (kg) } \\\hline \text { Lee } & 6 & 10 & 15 & 4 \\\hline \text { John } & 3 & 20 & 15 & 4\\\hline\end{array}$
-According to Table 3-2:

• A)Lee and John both could benefit by Lee specialising in butter, and John specialising in rice
• B)Lee and John both could benefit by Lee specialising in butter, and John specialising in butter
• C)Lee and John both could benefit by Lee specialising in rice, and John specialising in butter
• D)Lee and John both could benefit by Lee specialising in rice, and John specialising in rice

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Definitions:

Misstatements

A misstatement in financial information is an error, intentional or not, that causes financial statements to deviate from the true financial position, performance, or cash flows of an entity.

Economic Decisions

Choices made by individuals, firms, or governments regarding allocation of resources to satisfy needs and desires, often involving trade-offs.

Going Concern Basis

An accounting principle that assumes a business will continue to operate and remain solvent in the foreseeable future.

Accounting Policy

The unique criteria, base assumptions, conventions, statutes, and approaches employed by a business in the development and disclosure of financial statements.