-Using the Data in the Above Table, at the Price

question 20

Multiple Choice

-Using the data in the above table, at the price of $80 a phone, a

• A) surplus of 80 thousand cellular telephones occurs.
• B) shortage of 25 thousand cellular telephones occurs.
• C) surplus of 25 thousand cellular telephones occurs.
• D) shortage of 55 thousand cellular telephones occurs.

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Definitions:

Prepaid Expense

An expense paid in advance of its due date, recorded as an asset on the balance sheet until the benefits are realized or the service period expires.

Magazine Subscription

A magazine subscription is an agreement to receive or gain access to periodic issues of a magazine over a specified period, usually in return for a payment.

Paid

Refers to the status of an obligation or invoice that has been settled or fulfilled through payment.

Vertical Analysis

An approach to financial statement examination whereby each component is presented relative to a foundational number in the report.