Which of the Following Will Most Likely Decrease the Current

question 3

Multiple Choice

Which of the following will most likely decrease the current price of personal computers?

• A) a technological advance that decreases the production costs of personal computers
• B) an increase in consumer income
• C) development of new software that makes it easier for more people to use personal computers
• D) the expectation that the price of personal computers will increase during the next six months

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Definitions:

Marketable Securities

Financial instruments that can be quickly converted into cash with minimal loss in value.

Unrealized Increase

The increase in value of an asset that has not yet been sold or disposed of. It represents potential profit, but it is not reflected in the financial statements until the gain is realized.

APB Opinion No. 22

Guidance issued by the Accounting Principles Board on the disclosure of accounting policies, requiring firms to include a summary of significant accounting policies in their financial statements.

Subsequent Event

An event that occurs after the balance sheet date but before the financial statements are issued, which may affect the company's financial position or performance.