Which of the following is NOT likely to occur in the quantity adjustment phase of the J-Curve adjustment path?
A) Imports become relatively more expensive.
B) Exports become relatively less expensive.
C) The balance of trade gets worse.
D) All of the above are true.
Answer: C
Business
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The entry to establish reciprocity or convert from the cost to the equity method usually involves a debit to Investment in Subsidiary and a credit to what account?
a) Subsidiary's end-of-the-year R/E b) Parent's end-of-the-year R/E c) Parent's beginning-of-the-year R/E d) Subsidiary's beginning-of-the-year R/E
Business
Lower-of-cost-or-market
a. is most conservative if applied to the total inventory. b. is most conservative if applied to major categories of inventory. c. is most conservative if applied to individual items of inventory. d. must be applied to major categories for taxes.
Business