Which of the Following Statements Is True in Regard to Economic

question 57

Multiple Choice

Which of the following statements is true in regard to economic unions?

• A) The NAFTA is the only successful economic union in the world today
• B) The popularity of economic unions has increased over the years, and there are now more than 10 Successful economic unions in existence
• C) The EU is the only successful economic union in the world today
• D) There are no true economic unions in the world today
• E) The EU has decided to limit the strength of the economic union

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold before administrative and other expenses are deducted.

Commercial Substance

An occurrence in a transaction that causes a significant change in cash flow, indicating that the transaction has economic consequences.

Net Income

The company's earnings post all deductions, including expenses and taxes, from its overall revenues.

Deferred Tax Liability

This is a tax obligation that a company owes but can pay at a future date due to timing differences between its financial accounting and tax filing.