-The Above Figure Shows the U

question 60

Multiple Choice

-The above figure shows the U.S.market for wheat.With international trade,the gain in total surplus is equal to ________.

• A) area A
• B) area B + area C
• C) area D
• D) area C + area F
• E) area C + area D + area F

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Definitions:

Accounts Receivable

The amount of money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Contra-revenue Account

is an account that is deducted from gross revenues to arrive at net revenue, examples include sales returns, allowances, and discounts.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a debit to the sales returns account and a credit to accounts receivable or cash.

Gross Sales

The gross sales income of a business before subtracting any returns, allowances, or discounts.