Trade Is Likely To

question 113

Multiple Choice

Trade is likely to:

• A)lead to self-sustaining countries
• B)reduce the quantity of goods available in the economy
• C)allow each country to do what they are better at, than other countries
• D)lead to goods being produced at a lower quality

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Definitions:

Credit Sales

Sales transactions in which the customer is allowed to pay for goods or services at a later date, creating accounts receivable for the seller.

Cash Disbursements

The total amount of cash payments made by a business, including expenses, purchases, and debt payments.

Material Purchases

The total cost of raw materials acquired for use in the production process.

Est. Cost of Goods Sold

An estimated figure representing the cost directly associated with the production of the goods sold by a company.