The Following Events Occur One at a Time: I

question 15

Multiple Choice

The following events occur one at a time: I. The price of crude oil rises.
II. The price of a car rises.
III. All speed limits on highways are abolished.
IV. Robots cut car production costs.
The quantity of gasoline supplied

• A)increases when all speed limits on highways are abolished.
• B)increases when the price of crude oil rises.
• C)decreases when robots cut car production costs.
• D)increases when the price of a car rises.
• E)decreases when the price of crude oil rises.

---

Definitions:

R&D Costs

Expenses associated with the research and development of a company's goods or services, often considered an investment in a company's future.

Historical Cost Principle

An accounting principle that states all assets and liabilities should be recorded and reported at their original purchase cost.

Comparability

A financial accounting principle that allows the financial statements of multiple periods or companies to be comparable with each other.

Conservatism

An accounting principle that mandates recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but only recognizing revenues and assets when they are assured of being received.