If the Supply and Demand Curves Intersect at a Price

question 243

Multiple Choice

If the supply and demand curves intersect at a price of $14,then any price below that would result in:

• A)a shortage.
• B)a surplus.
• C)equilibrium.
• D)an increase in demand.

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Definitions:

Allowance Method

A method of accounting that estimates and sets aside an amount for potentially uncollectible receivables.

Bad Debts

Receivables from accounts deemed not collectable, which constitute financial losses for the business.

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable balance within a specific period.

Net Sales

The net sales revenue of a company, calculated after deducting returns, allowances for damage or loss, and any discounts.