Table 3-3 -Refer to Table 3-3

question 13

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.If Europe and the US trade according to the principle of comparative advantage:

• A)all individuals in both countries will gain
• B)both countries can have more aeroplanes and cars
• C)Europe will specialise in cars and the US will specialise in aeroplanes
• D)both countries will consume on their own production possibilities frontier

Understand the equity method for accounting investments of 20-50% in another company's stock.

Differentiate between the fair value method and equity method of accounting for investments.

Recognize the implications of business combinations on financial statements.

Identify the methods for accounting for small stock investments and held-to-maturity securities.

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Definitions:

Adjusted Trial Balance

A final tally of all financial accounts, after adjustments, used to prepare financial statements, ensuring the total debits equal total credits.

Income Statement Columns

Sections within an income statement that categorize financial data, such as revenues and expenses, to help in analyzing a company's financial performance over a specific period.

Companionate Grandparenting

A style of grandparenting characterized by emotional closeness and mutual enjoyment in spending time with grandchildren.

Parenting

The activity of raising and nurturing children with the goal of helping them develop physically, emotionally, socially, and intellectually.