-Refer to the Above Table

question 311

Multiple Choice

-Refer to the above table. Assuming that opportunity costs are constant, the opportunity cost of producing a computer in the United States is equal to ________, and the opportunity cost of producing a computer in Mexico is ________.

• A)4 bicycles; 0.5 bicycles
• B)0.25 bicycle; 2 bicycles
• C)2.67 computers; 0.33 bicycles
• D)0.375 bicycle; 3 computers

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, helping to prepare the books for the next period.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse certain adjusting entries made in the previous period.

T-Accounts

A graphic representation of a general ledger account that outlines the debit and credit sides to visualize the effect of transactions on the account.

Reversing Entries

Entries executed at the onset of an accounting cycle to annul or reverse the adjusting records that were established at the end of the last period.