The Price of a Good Will Fall If

question 159

Multiple Choice

The price of a good will fall if

• A)demand for the good increases.
• B)supply of the good decreases.
• C)supply of the good increases.
• D)demand for the good remains constant.
• E)supply of the good remains constant.

---

Definitions:

Expense Recognition Principle

A core principle of accrual accounting that dictates when expenses are recognized and reported in the financial statements, generally aligning expenses with the revenues they help to generate.

Income Statement

A financial report detailing a company's revenue, cost of goods sold, gross profit, operating expenses, and net income over a specific period.

Managers

Individuals responsible for planning, directing, and overseeing the operations and fiscal health of a business or organization.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid out.