From These Figures We Can Conclude That

question 161

Multiple Choice

From these figures we can conclude that

• A)China has a comparative advantage in rice.
• B)China has a comparative advantage in radios.
• C)the United States has a comparative advantage in radios.
• D)neither has a comparative advantage in these two goods.

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Definitions:

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur, providing a more accurate picture of a company's financial condition.

Recorded

The act of documenting financial transactions in the accounting records or ledgers of a company.

Adjusted Trial Balance

A financial statement that lists all accounts of a company and their balances after adjustments have been made.

Adjusting Entries

Journal entries made in accounting to update the records for revenues and expenses that have accrued but not yet been recorded through standard accounting transactions.