Table 21 -Refer to Table 2

question 155

Multiple Choice

Table 2.1
$$\begin{array}{l}\text { Table } 2.1\\\begin{array} { | l | l | l | l | l | l | } \hline \text { Item } & \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } & \mathrm { E } \\\hline \text { Movie } & \$ 0 & \$ 10 & \$ 20 & \$ 30 & \$ 40 \\\hline \text { Restaurant } & \$ 40 & \$ 30 & \$ 20 & \$ 10 & \$ 0 \\\hline\end{array}\end{array}$$
-Refer to Table 2.1. You can spend $40 on going to the movies or eating at a restaurant, or both. What is the opportunity cost of Option C?

• A) $10 in terms of movies
• B) $10 in terms of restaurant
• C) $20 in terms of movies and $20 in terms of restaurant
• D) $40 because you managed to do both
• E) $0 because you managed to do both

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Definitions:

Consolidation Worksheet

A document utilized in accounting to systematically combine the financial statements of a parent organization and its subsidiaries, ensuring accurate presentation of consolidated financial data.

Intra-Entity Gross Profit

Gross profit resulting from transactions within the same company or among its subsidiaries, often eliminated during consolidation for accurate financial reporting.

Initial Value Method

An accounting method where investments are recorded at their original cost to the owner at the time of purchase, without subsequent adjustments for market changes.

Equity Method of Accounting

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the investor’s share of the investee’s income, losses, and dividends received.