An Increase in the Number of Producers of Bird Seed

question 286

Multiple Choice

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

• A) increases; rightward
• B) increases; leftward
• C) decreases; rightward
• D) decreases; leftward
• E) does not change; rightward

---

Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of shareholders.

Subsidiary's Shareholders' Equity

The net assets attributable to the shareholders of a subsidiary, consisting of share capital plus retained earnings.

Acquisition Differential

The difference between the purchase price of an acquired company and the book value of its assets and liabilities.

Push Down Accounting

An accounting method in which the financial statements of a subsidiary are adjusted to reflect the parent company's basis of assets, liabilities, and any goodwill created in the acquisition.