If the Prices Received by Farmers Increased and the Prices

question 118

Multiple Choice

If the prices received by farmers increased and the prices paid by farmers also increased, the parity ratio

• A)will necessarily be unchanged.
• B)may either increase or decrease.
• C)will necessarily increase.
• D)will necessarily decline.

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.

Net Income

The residual income of a company once every expense and tax payment has been extracted from revenue.

Amortization Expense

The portion of the cost of an intangible asset that is allocated as an expense over its useful life.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded through the normal accounting process.