Use the Following to Answer Question

question 10

Multiple Choice

Use the following to answer question:
-(Figure: Demand and Supply of Shirts) Use Figure: Demand and Supply of Shirts.In the graph,if the line labeled D shows how many shirts per week will be demanded at various prices,then it is clear that,as the price of shirts falls:

• A)fewer shirts will be demanded.
• B)more shirts will be demanded.
• C)the same quantity of shirts will be demanded.
• D)it is unclear what will happen to the quantity of shirts demanded.

---

Definitions:

Relevant Financial Information

Financial data that is capable of making a difference in business decisions, being timely and having predictive and confirmatory value.

Cash Basis

Cash basis is an accounting method where revenues and expenses are recorded only when cash is received or paid, regardless of when the transactions occurred.

Accounting Period

A specific time period at the end of which an entity prepares financial statements to assess its financial performance and position.

Budgeting

The process of creating a plan to spend your money, allocating the estimated income towards various categories of expenses.