Table 2.8 Table 2.8 Shows the Number of Labour Hours Required to of Labour

question 110

Multiple Choice

Table 2.8

Table 2.8 shows the number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2.8. Does either Ireland or Scotland have an absolute advantage and if so, in what product?

• A)Scotland only has an absolute advantage in guitars.
• B)Ireland only has an absolute advantage in guitars.
• C)Scotland has an absolute advantage in both products.
• D)Ireland only has an absolute advantage in motorcycles.

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Definitions:

Liquidity of Receivables

The ease with which accounts receivable can be converted into cash, reflecting the company's efficiency in managing credit sales.

Accounts Receivable

Financial obligations that clients have towards a company for goods or services delivered but still awaiting payment.

Bank Reconciliation

The process of comparing and adjusting an entity’s accounting records with the bank statements to ensure accuracy and consistency.

Monthly Basis

A regular interval or frequency of events or assessments occurring once every month.