Ceteris Paribus,which of the Following Would Generally Cause an Increase

question 101

Multiple Choice

Ceteris paribus,which of the following would generally cause an increase in the demand curve for new automobiles?

• A)A decrease in the price of new automobiles.
• B)An increase in consumers' income.
• C)The new models being perceived as ugly compared with old models.
• D)Consumer expectations that the price of new automobiles will be lower next year.

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Definitions:

Bad Debts Expense

Bad debts expense is the cost associated with accounts receivable that a company does not expect to collect due to customers being unlikely to pay.

Credit Balance

A situation where the total credits in an account exceed the total debits.

Aging

A method used in accounting to categorize and assess the financial health of receivables or inventory based on the period they have been outstanding or in stock, respectively, to identify potential losses or risks.

Accounts Receivable

Liabilities of customers to a business entity for services or products provided but still awaiting payment.