Which of the Following Best Represents the Effects of a Decrease

question 176

Multiple Choice

Which of the following best represents the effects of a decrease in the price of tomato juice, other things being equal?

• A) An upward movement along the demand curve for tomato juice.
• B) A downward movement along the demand curve for tomato juice.
• C) A rightward shift in the demand curve for tomato juice.
• D) A leftward shift in the demand curve for tomato juice.

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Definitions:

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting rules and standards used in the United States for financial reporting.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transactions occur.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid, irrespective of when the transactions actually occurred.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the correct periods.