Which of the Following Statements Is TRUE

question 324

Multiple Choice

Which of the following statements is TRUE?

• A) A price ceiling is the minimum price allowed by law.
• B) An increase in market demand does not lead to an increase in quantity supplied under a price ceiling.
• C) A shortage occurs whenever the price is set above the equilibrium price.
• D) When quantity supplied exceeds quantity demanded, the market experiences a shortage.

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Definitions:

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary data source for the financial statements.

Accounts Receivable

Unpaid amounts by customers to a company for goods or services already rendered.

Cash Receipts Journal

A dedicated journal used to record all cash inflows or receipts of a business.

Sales of Merchandise

The total revenue generated from selling goods that are intended for resale as part of a company's normal business operations.