The Convergence Hypothesis Is

question 216

Multiple Choice

The convergence hypothesis is:

• A)wrong, because Latin American and African countries have not been able to grow.
• B)not wrong, but education, infrastructure, and the rule of law are not equal among nations.
• C)not wrong, but because poorer nations are involved in so many destabilizing incidents like wars, disease, and famines, they will never be able to catch up with the rest of the world.
• D)wrong, because poorer nations' income seems to get worse over time and the richer nations' income get better.

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Definitions:

Accounts Receivable-Year 2

The amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for in the second fiscal year.

Realized Gross Profit

The total profit a company makes from its sales after deducting the cost of goods sold, but only on transactions completed within the reporting period.

Deferred Gross Profit-Year 2

The portion of profit from installment sales recognized in the second year, not immediately at the time of sale, due to revenue recognition principles.

Cost Of Installment Goods Sold

The cost assigned to goods that have been sold on installment, including both the cost of manufacturing and a portion of interest on the installment sales.