Which of the Following Statements Is False

question 188

Multiple Choice

Which of the following statements is false?

• A)In a competitive market, the price mechanism encourages conservation of a depletable resource.
• B)As the price of a depletable resource rises, its known reserves often increase.
• C)Prices of depletable resources have risen in the twentieth century primarily because resource producers have exercised monopoly or oligopoly power.
• D)Shortages of depletable resources occur primarily when governments or others interfere with the price mechanism.

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid.

Operating Activities

Business activities that relate directly to the production, sale, and delivery of a company's products or services, generating revenue.

Cash Dividends

Payments made by a corporation to its shareholders out of its profits or reserves in the form of cash.

Direct Method

An accounting approach for preparing the cash flow statement where operating cash receipts and payments are listed directly.