Assume That Blade Runner Specializes in Producing In-Line Skates and Hang

question 282

Multiple Choice

Assume that Blade Runner specializes in producing in-line skates and Hang Ten specializes in producing surfboards. After trade Blade Runner exports 800 pairs of in-line skates and imports 200 surfboards. The terms of trade

• A) are 1:4 in-line skates to surfboards.
• B) are 4:1 in-line skates to surfboards.
• C) are 1/4:1 in-line skates to surfboards.
• D) cannot be determined from this information.

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Definitions:

Book Of Final Entry

Book that receives information about business transactions from a book of original entry (a journal). Example: a ledger.

Trial Balance

An accounting report that lists the balances of all ledgers accounts to ensure that total debits equal total credits.

Accounts Payable

Short-term liabilities of a business that represent amounts owed to creditors for goods and services purchased on credit.

Fees Earned

Income received or earned for services provided.