As a Result of the Rapid Growth of the Chinese

question 6

Essay

As a result of the rapid growth of the Chinese economy,world demand for petroleum products has increased significantly.At the same time the war in Iraq has reduced that nation's petroleum production and exports to levels that are well below pre-war levels.Both events have had significant impacts on world oil prices.How would the simple supply and demand model apply to this case?

---

Definitions:

Net Income

The amount of profit left after all expenses, taxes, and costs have been subtracted from total revenue.

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but retained by the company for reinvestment or to pay off debt.

Adjusted Trial Balance

A trial balance that reflects all adjustments made to the general ledger accounts, ensuring the debits equal the credits prior to preparing financial statements.

Balance Sheet Columns

Sections within the balance sheet that categorize assets, liabilities, and equity accounts to display a company's financial position at a specific point in time.