Which of the Following Would Cause the Current Supply of IPods

question 14

Multiple Choice

Which of the following would cause the current supply of iPods to increase?

• A) an economic boom, which increases the amount that people are willing to spend on personal electronics
• B) a decrease in the price of songs on iTunes
• C) the expectation that the future price of iPods will decrease
• D) an increase in the wages offered to manufacturers of iPods

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Definitions:

Contra-Asset

An asset account where the balance is expected to be a debit balance but is instead a credit balance, such as accumulated depreciation.

Worksheet

A spreadsheet used by accountants to prepare adjusting entries, financial statements, and to ensure the accounts balance before closing.

Accountant

A professional who performs accounting functions such as audits or financial statement analysis and is proficient in financial reporting and regulation.

Depreciation Expense

The method of distributing the expense of a physical asset across its serviceable duration, accounting for depreciation or becoming outdated.