Abe Can Catch 10 Pounds of Fish an Hour or Pick

question 363

Multiple Choice

Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. Zeb can catch 30 pounds of fish an hour or pick 20 pounds of fruit. The opportunity cost of fish is ________ for Abe than for Zeb, and the opportunity cost of fruit is ________ for Abe than for Zeb.

• A) higher; lower
• B) lower; higher
• C) higher; higher
• D) lower; lower

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Definitions:

Indirect Method

A method of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for non-cash transactions.

Indirect Method

A technique used in cash flow analysis to adjust net income by changes in non-cash accounts to arrive at cash provided by operating activities.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, used to reduce the asset's book value over time.

Intangible Assets

Non-physical assets that provide economic benefits to a company, such as patents, trademarks, goodwill, and copyrights.