Which of the Following Is True

question 24

Multiple Choice

Which of the following is true?

• A)Much of the trade of the European Union (EU)countries is with EU countries.
• B)Industrialized countries tend to trade relatively little and largely with developing countries.
• C)Developing countries in Africa and South America tend to trade the most and largely with themselves.
• D)All of the above are true.

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Definitions:

Merchandise Inventory

The goods available for sale to customers by a retail or wholesale business, representing a significant asset on the balance sheet.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing sales revenue to total assets.

Stockholders' Equity

Represents the amount of financing provided by owners of the business and retained earnings.

Acid-Test Ratio

A stringent test that indicates whether a company has enough short-term assets to cover its immediate liabilities without selling inventory.