If Two Goods, J and K, Are Complements, Then Which

question 392

Multiple Choice

If two goods, J and K, are complements, then which of the following statements is FALSE?

• A) They are consumed together.
• B) An increase in the price of J causes the demand for K to rise.
• C) When the quantity demanded of J increases, the demand for K increases.
• D) A decrease in the price of K causes an increase in the demand for J.

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Definitions:

Chart of Accounts

A systematic listing of all accounts used by an organization, categorized to facilitate financial reporting and bookkeeping.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting in the U.S.

Income Statement Accounts

The accounts that report the revenues, expenses, gains, and losses of a company, which are used to calculate the net income on the income statement.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check for accuracy.