Keith Will Graduate from Southern State University This Year

question 53

Multiple Choice

Keith will graduate from Southern State University this year. He has accumulated $18,000 in student loans during his four years at college. An accountant would classify the loans as:

• A) assets.
• B) liabilities.
• C) owners' equity.
• D) intangibles.

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Definitions:

Trade

The act of buying, selling, or exchanging goods and services between people or entities within or across borders.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than its competitors.

Televisions

Electronic devices designed for the reception and display of audiovisual content transmitted over airwaves or through cable systems.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, enabling more efficient trade.