The Price of Oranges Has Risen Dramatically

question 225

Multiple Choice

The price of oranges has risen dramatically.Which of the following is likely to happen?

• A) The quantity of oranges supplied will increase.
• B) The quantity of oranges supplied will decrease.
• C) The supply of oranges will decrease.
• D) The supply of oranges will increase.

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Definitions:

Accounting Cycle

The series of steps in processing financial transactions, from the initial recording to the preparation of financial statements.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Current Liabilities

Financial commitments that need to be settled within a year or during the regular operation period of a company.

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.