The Belief That Communist Aggression Fed Off of Economic Turmoil

question 19

Multiple Choice

The belief that Communist aggression fed off of economic turmoil was instrumental in the formulation of

• A)the Domino Theory.
• B)the Marshall Plan.
• C)COMECON.
• D)the doctrine of neo-capitalism.
• E)the Long Telegram.

Prepare comprehensive and single-step income statements, including adjustments and closing entries.

Compute gross profit, income from operations, and net income.

Understand the accounting treatment of purchase discounts, returns, and allowances.

Calculate the effects of inventory errors and their corrections on financial statements.

---

Definitions:

Leisure

Free time when one is not working or occupied; time available for ease, relaxation, and activities one enjoys.

Substitution Effect

Changes in what consumers purchase, brought about by alterations in the relative costs of goods, persuading consumers to opt for alternatives over their usual choices.

Income Effect

The correlation between income changes in an economy or for individuals and their effect on the quantity of goods and services demanded.

Opportunity Cost

The value of the next best alternative that is foregone when a decision is made to choose one option over another.