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3 years ago

Explain consumptions of the principal of absolute advantage

Business

1 answer:

DENIUS [597]3 years ago

6 0

Answer:

The Absolute Advantage Theory assumed that only bilateral trade could take place between nations and only in two commodities that are to be exchanged.

Explanation:

In economics, the principle of absolute advantage refers to the ability of a party (an individual, a firm, or a country) to produce more of a good or service than competitors while using the same amount of resources.

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John, an American executive, learns that a foreign subsidiary hired a 12-year-old orphan girl to work on the factory floor. He k

tino4ka555 [31]

Answer: An ethical dilemma

Explanation:

An ethical dilemma is a situation where an individual is faced with making a decision between two options where if any option is chosen the individual might act against his/her moral principle. Like in the question, John is faced with the option of either complaining about child labor and then the child losses his/her source of income or allowing things to be as they already are.

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3 years ago

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Which of the following is true regarding externalities? Group of answer choices Externalities can only be corrected with governm

Valentin [98]

Answer: Externalities occur when the actions of an individual or group spill over onto others, without their consent.

Explanation:

By definition, an Externality is the effect of an action by an individual or group that spills over onto third parties without their consent.

Externalities can be either negative or positive. A positive externality for instance would be bees from a bee farm pollinating flowers in the environment.

A negative externality would be air pollution from China for instance contributing to global warming effects experienced in Northern Africa.

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3 years ago

Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2020, at 103. Interest is payable annually on January 1. Adcock

FromTheMoon [43]

Answer: Please find answers in explanation column.

Explanation:

a. Journal to record The issuance of the bond

Date Account Titles Debit Credit

Jan. 1 Cash $618,000

9% Bonds payable $600,000

Premium on Bonds payable $18,000

Calculation

Cash = 600,000 x 103% =$618,000

b. The accrual of interest and the premium amortization on December 31, 2020

Date Account Titles Debit Credit

Dec. 31 Interest expense $53,100

Premium on Bonds payable $900

Interest payable $54,000

Calculation

Interest = 600,000 x 9% = $54,000

Premium on bonds = 18,000 /20 = $900

Interest expense=$54,000- $900=$53,100

c.Journal to record The payment of interest on January 1, 2021. Date Account Titles Debit Credit

Jan. 1 Interest payable 54000

Cash 54000

d) Journal to record The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

Date Account Titles and Explanation Debit Credit

Jan. 1, 2 Bonds payable $600,000

Cash $600,000

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3 years ago

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Alexxandr [17]

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3 years ago

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What checks are there on the accuracy of these statements? (Select the best choice below.)

kkurt [141]

Answer:

The correct answer is B

Explanation:

The checks which are there on the accuracy of the statements are:

1. The corporation needed to hire or require the neutral party, which is known as the auditor in order to check the annual financial statements of the company, and also ensures that the financial statements are to prepared as per GAAP (generally accepted accounting principles). It should also offer the evidence to support the information reliability.

2. The public companies need to use a common or general set of rules and the standard format while making the reports.

3. The role of auditor is to review the financial statements and in addition Sarbanes-Oxley Act requires the CFO as well as CEO to attest personally to the accuracy of the financial statements.

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3 years ago

Explain consumptions of the principal of absolute advantage​

Explain consumptions of the principal of absolute advantage