Regan Grows Flowers and Makes Vases

question 56

Multiple Choice

Regan grows flowers and makes vases.Jayson also grows flowers and makes vases,but Regan is better at producing both.Who has an absolute or comparative advantage in what activity

• A)Regan has an absolute advantage in both activities.
• B)Jayson has an absolute advantage in both activities.
• C)Regan has a comparative advantage in growing flowers.
• D)Jayson has a comparative advantage in growing flowers.

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Definitions:

Allowance Method

An accounting technique used to estimate and account for potential uncollectable debts or credit sales.

Uncollectible Receivables

Debts owed to a company that are considered unlikely to be paid by the debtor, often written off as bad debts.

Bad Debts Expense

Bad debts expense is the cost to a business of accounts receivable that are not collected because customers are unable to pay.

Allowance for Doubtful Accounts

An accounting provision made for accounts receivable that may not be collectible.