As the Demand for a Product Falls, It Is Not

question 30

Multiple Choice

As the demand for a product falls, it is not uncommon for the industry to become a monopoly.This is most likely due to

• A)an increase in the number of barriers.
• B)legal restrictions being imposed.
• C)the surviving firm operating on the declining part of its average cost curve.
• D)patent protection causing high prices.

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Definitions:

Credit Columns

The sections on the right side of accounting ledgers where credit transactions are recorded.

Chart Of Accounts

A systematic listing of all account titles and numbers being used by an organization to track its financial transactions and prepare financial statements.

Ledger

A comprehensive book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type, with debit and credit entries in separate columns and a beginning and ending balance for each account.

Working Paper

Documents prepared by accountants during an audit that summarize the findings and support the final report.