Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)Comparative advantage is the principle upon which trade patterns are based.
• B)Opportunity cost measures the real cost to a country of producing a certain product.
• C)The gains from trade are the result of differences in opportunity cost and comparative advantage.
• D)A country that possesses an absolute advantage will always have a comparative advantage.
• E)Comparative advantage is necessary and sufficient for trade.

Recognize the importance of wage and salary surveys in determining compensation.

Comprehend different methods of job evaluation and their application.

Understand the broader concept of compensation, including direct and indirect compensation, and the total reward model.

Understand the computation and significance of net present value (NPV) in capital budgeting decisions.

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Definitions:

General Ledger

A comprehensive record of all financial transactions within an organization, serving as the foundation for a company's financial statements.

Cash Payments Journal

A financial journal that records all cash outflows or payments made by a business, including expenses, debt payments, and purchases.

Credit To Cash

A transaction in accounting where a credit sale is paid off, converting receivables into cash.

Accounts Payable

Liabilities of a business that represent money owed to suppliers or creditors for goods and services received.