The World Price of a Pound of Almonds Is $4

question 110

Multiple Choice

The world price of a pound of almonds is $4.50. Before Uruguay allowed trade in almonds, the price of a pound of almonds there was $3.00. Once Uruguay began allowing trade in almonds with other countries, Uruguay began

• A)exporting almonds and the price per pound in Uruguay remained at $3.00.
• B)exporting almonds and the price per pound in Uruguay increased to $4.50.
• C)importing almonds and the price per pound in Uruguay remained at $3.00.
• D)importing almonds and the price per pound in Uruguay increased to $4.50.

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Definitions:

Adjusting Entry

An adjusting entry is a journal entry made in accounting records to adjust income and expense accounts so they comply with the accrual concept.

Interest-Bearing Note

A debt instrument in which the issuer pays the holder interest at a specified rate over the term of the note.