Consider Three Imaginary Countries

question 14

Multiple Choice

Consider three imaginary countries.In Aire,saving amounts to $4,000 and consumption amounts to $12,000;in Bovina,saving amounts to $3,000 and consumption amounts to $24,000;and in Cartar,saving amounts to $10,000 and consumption amounts to $50,000.The saving rate is

• A)higher in Aire than in Cartar,and it is higher in Cartar than in Bovina.
• B)higher in Cartar than in Aire,and it is higher in Aire than in Bovina.
• C)higher in Cartar than in Bovina,and it is the same in Bovina and Aire.
• D)higher in Aire than in Bovina,and it is the same in Aire and Cartar.

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Definitions:

Income Statements

Income Statements are financial reports that summarize a company's revenues, expenses, and profits or losses over a specific period, typically a fiscal quarter or year.

Trend

A general direction in which something is developing or changing.

Adjusted Trial Balance

A trial balance after adjustments, showing the balances of all accounts including those adjusted, which will be used for preparing financial statements.

Supplies Expense

An accounting term referring to the cost consumed in using up supplies such as office materials over a specific accounting period.