Directions: Apply the Knowledge You Have Gained from Chapter 5

question 7

Multiple Choice

Directions: Apply the knowledge you have gained from Chapter 5 to select the best answer to the questions about the following reading passage.
"Global warming is already having a serious impact on the world around us. According to NASA, average temperatures have climbed 1.4 degrees Fahrenheit around the world since 1880, with most of the warm-up occurring in the last few decades. Arctic ice is rapidly disappearing, and the loss of habitat is endangering polar bears. Glaciers and mountain snows are rapidly melting."
  Use the information in the reading passage to complete the line diagram:

• A) Glaciers and mountain snows are melting
• B) NASA reports a climb of 1.4 degrees F
• C) Global warming is having a serious impact
• D) The changes began in 1880

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders as a distribution of profits, typically in cash form, reflecting the company's profitability.

Cost Method

An accounting method used for investments, where the investment is recorded at its acquisition cost and adjustments are made for dividends received and changes in fair value are not recorded.

Trading Securities

Financial instruments bought and held primarily for selling them in the near term to profit from short-term price movements.

Fair Value

An estimate of the market value of an asset or liability, based on the price at which willing parties would enter into a transaction.