Answer: C. Colombia has an absolute advantage producing coffee, and Cuba has an absolute advantage producing oranges
Explanation:
From the question, we are informed that Colombia spends 2 hours producing coffee and 6 hours producing oranges, and Cuba spends 3 hours producing coffee and 1 hour producing oranges.
Since Columbia spends a lesser time producing coffee and Cuba spends a lesser time producing oranges, it means that Colombia has an absolute advantage producing coffee, and Cuba has an absolute advantage producing oranges.
Answer:
MRCORRECT has answered the question
Explanation:
Fiat money has value because the government declares that it has value.
Answer:
only the results of the business' activities
Explanation:
balance sheet is among the three main financial statements prepared by a corporation. It reports the financial positions of the business by showing the value of assets, liabilities, and the shareholder's equity at any point in time. Therefore, a balance sheet shows the net worth of the corporation.
The preparation of the balance sheet follows the accounting equation of assets equals liabilities plus shareholder equity. On one side, the balance sheet reports the assets and liabilities and equity on the other. In other words, the balance sheets indicate how the assets of a business are financed. It does not report on the personal activities of business owners.
Answer:
Total Stockholders' equity was affected.
Explanation:
Stock dividend refers to distributing shares free of cost among the existing shareholders. Such a dividend does not result in resources flowing out of the entity but merely reassign amounts from retained earnings to other equity accounts. Thus, such a dividend does not affect the total equity of the stockholders. This can be seen through the following entry,
Retained Earnings $1,800,000 Dr
Common Stock, at par $1,200,000 Cr
Paid in Capital in excess
of par, Common Stock $600,000 Cr
The above transaction shows that we just redistributed the reserves by reducing retained earning by the value of stock dividend 1800000 [( 800000*0.15) * $15] and adding it to the Common Stock 1200000 [(800000*0.15) * 10] and to paid in capital in excess of par 600000 [(800000*0.15) * 5].
