Which If the Following Is the Best Example of Derived

question 179

Multiple Choice

Which if the following is the best example of derived demand?

• A) Janice got a Samsung Galaxy Tab for her birthday, and now her best friend Tamika wants one for her birthday.
• B) The demand for movie theater ushers increases when more consumers choose to go to movie theaters.
• C) More peanut butter is demanded as the price of strawberry jam falls.
• D) When the price of Honda Accords increased, the demand for Nissan Altimas went up.

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Definitions:

Uncollectible Account

Refers to receivables that a company has deemed impossible to collect, recognizing it as a bad debt expense.

Repayment of Loan

The process of paying back borrowed money to the lender, typically involving periodic payments of principal and interest over a set term.

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Accounts Payable

Liabilities of a business that are due to creditors within a short period of time, usually for the purchase of goods and services.