The Following Question Are Based on the Following Diagram

question 64

Multiple Choice

The following question are based on the following diagram:

-If the actual price of sweatshirts is $10 each,the market is not in equilibrium because

• A) all consumers willing to pay $10 for a sweatshirt are unable to buy one.
• B) there is excess demand.
• C) the rate at which sweatshirts are supplied is greater than the rate at which they are demanded.
• D) the price at which sweatshirts are demanded is less than the price at which they are supplied.
• E) the price is not equal to the quantity.

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, recognizing the consumption, wear and tear, or obsolescence of physical or fixed assets used in operations.

Tax Return

A form filed with a government body declaring liability for taxation, containing details of income earned and taxes owed.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, often including a profit and loss statement, balance sheet, and cash flow statement.

Accrual Basis

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.