The Table Given Below Reports the Sales Value at Each

question 11

Multiple Choice

The table given below reports the sales value at each stage of production of the soft drink Pepsi.
Table 5.3
$\begin{array}{|l|c|}\hline {\text { Production Stage }} & \text { Sales Value } \\\hline \text { Sugar cane } & \$ 0.05 \\\hline \text { Processed sugar } & \$ 0.10 \\\hline \text { Wholesale Pepsi } & \$ 0.40 \\\hline \text { Pepsi in a vending machine } & \$ 0.60 \\\hline\end{array}$
-Refer to Table 5.3. Compute GDP according to the income approach if Pepsi is assumed to be the only good produced in the economy.

• A) $1.05
• B) $0.05
• C) $0.20
• D) $0.60
• E) $0.40

Analyze the importance of critical thinking in evaluating accounting principles and practices.

Understand the procedural steps the FASB follows in issuing new accounting statements.

Comprehend the approval process for issuing new International Accounting Standards.

Recognize ethical dilemmas auditors may encounter and understand the role GAAP plays in such dilemmas.

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