A Spherical Balloon Has a Circumference of 10 Inches

question 47

Multiple Choice

A spherical balloon has a circumference of 10 inches. If it expands to twice the volume, what happens to its circumference?

• A) Its circumference more than doubles.
• B) Its circumference doubles.
• C) Its circumference increases but does not double.

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Definitions:

Profit Recognition

The process of reporting income when it is earned and realized or realizable, following accounting principles.

Line-By-Line Method

An accounting technique used in consolidation, where the parent company combines each item of the subsidiary's financial statements with its own, item by item.

Fair Value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Carrying Amount

The amount at which an asset or liability is recognized in the balance sheet after deducting accumulated depreciation, impairment, and amortization.