On December 10 the Price of a Christmas Tree Is

question 489

Multiple Choice

On December 10 the price of a Christmas tree is $50 and 100 trees are purchased. On December 20 the demand for Christmas trees decreases so that the price falls to $30 and 20 trees are purchased. From this set of facts, the

• A) demand for Christmas trees is price inelastic.
• B) demand for Christmas trees is price elastic.
• C) supply of Christmas trees is inelastic.
• D) supply of Christmas trees is elastic.

Identify the bodies responsible for setting generally accepted accounting principles (GAAP) and their role.

Describe the principle of conservatism in accounting.

Understand the conditions under which companies can change accounting methods.

Comprehend the benefits and criticisms of fair value accounting.

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