David Ricardo

question 223

Multiple Choice

David Ricardo:

• A) suggested that increasing wages for workers would increase their consumption and lead to economic growth.
• B) wanted to protect textile markets in England.
• C) suggested that countries would benefit from trade.
• D) suggested that goods were exchanged based of the value of those in use.

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Definitions:

Journal Entries

Records of financial transactions in the accounting system, showing accounts affected, amounts, and date.

Allowance Account

An account used in accounting to reflect anticipated losses from accounts receivable that might not be collected.

Direct Write-Off Method

A method of accounting for bad debts whereby companies directly remove (write off) uncollectible amounts from accounts receivable when they are deemed uncollectible.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.