A Local Business Man Owns Several Different Companies

question 32

Multiple Choice

A local business man owns several different companies.His accountant prepares separate annual financial statements for each of these businesses.This is an application of which of the following principles:

• A)Full disclosure
• B)Periodicity
• C)Economic entity
• D)Matching

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Definitions:

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in the demand for the other.

Demand Curve

A visual chart that illustrates the connection between the cost of an item and the amount consumers are willing to buy at those costs.

Demand Curve

A chart that illustrates how the quantity of a product that consumers are ready to buy varies with its price.

Decrease in Demand

Refers to a situation where consumers' desire to purchase goods or services at a given price level decreases, leading to a leftward shift in the demand curve.