Refer to the Figure

question 25

Multiple Choice

Refer to the figure.
The figure is an example of a climate diagram, which gives average monthly temperatures and precipitation levels for a given location over a year. Using only the information in the climate diagram, which of the following conclusions can be drawn about the plant life at this location?

• A) Plant life can grow here nearly all year, but is briefly limited by cold or drought.
• B) Plant life can grow here for only about five months of the year.
• C) Plant life can grow here for all twelve months of the year.
• D) Plant life is not possible at this location due to extremes in temperature and rainfall.

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Definitions:

Fair Value

The estimated market price of an asset or liability, based on current conditions and the willing buyer-seller principle.

Capital

The owner’s investment of equity in the company.

Debit

The left-hand side of any account. A number entered on the left side of any account is said to be debited to an account.

Credit

The right-hand side of any account. A number entered on the right side of any account is said to be credited to an account.