The United States Is Known to Be More Capital Abundant

question 59

Multiple Choice

The United States is known to be more capital abundant than labor abundant. According to ____________ theory,the U.S.should export capital intensive goods in exchange for labor intensive goods.

• A)competitive advantage
• B)overlapping product ranges
• C)product cycle
• D)strategic trade
• E)factor proportions

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Definitions:

Written Off Accounts

Accounts receivable that a company deems uncollectible and removes from its books.

Bad Debt Expense

The portion of accounts receivable that is estimated to be uncollectible and is recognized as an expense in the financial statements.

Credit Sales

Transactions where goods are sold and payment is deferred, typically allowing the customer to pay at a later date without interest.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables on the balance sheet to reflect the amount expected to be uncollectible.