A Decrease in the Price of Milk (And Ingredient of Ice

question 180

Multiple Choice

A decrease in the price of milk (and ingredient of ice cream) will result in a(n) :

• A) shift of the supply curve of ice cream to the left.
• B) shift of the supply curve of ice cream to the right.
• C) lower price of ice cream, and thus an increase in the demand for ice cream.
• D) increase in the demand for ice cream and a decrease in the supply of milk.

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Definitions:

Income Statement Debit

A transaction or expense that decreases net income on the income statement.

Net Loss

The amount by which expenses exceed revenues.

Adjustments

These are entries made in accounting to record expenses that have occurred but are not accurately represented in the financial statements at the end of the accounting period.

Journal

A detailed record where all financial transactions of a business are initially recorded before being summarized in the ledger.