Every Business Must Be Prepared to Deal with the Global

question 60

True/False

Every business must be prepared to deal with the global economy.

Distinguish the accounts used and affected in the periodic inventory system.

Differentiate between the accounts impacted in the perpetual inventory system.

Know how to record freight charges and merchandise purchases on credit under both systems.

Understand the implications of merchandise returns on account balances under the perpetual inventory system.

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Definitions:

Capital Goods

Assets utilized by businesses to create wealth through the manufacturing of goods and services, including buildings and tools.

Opportunity Cost

The sacrifice of potential rewards from different possibilities upon opting for one alternative.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with given resources and technology.

Negative Slope

A feature of a line on a graph that indicates a decrease in the dependent variable as the independent variable increases.