Which of the Following Is a True Statement

question 118

Multiple Choice

Which of the following is a true statement?

• A) If demand is inelastic and the price increases, the total revenue will decrease.
• B) If demand is inelastic and the price increases, the total revenue will increase.
• C) If demand is elastic and the price increases, the total revenue will increase.
• D) If demand is elastic and the price decreases, the quantity demanded will decrease.

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Definitions:

Indirect Method

A cash flow statement presentation method that adjusts net income for the changes in balance sheet accounts to calculate cash flow from operating activities.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, often referred to as the bottom line.

Statement of Cash Flows

A financial report showing the cash inflows and outflows from operating, investing, and financing activities of a company over a period.

Operating Activities

These involve the primary, day-to-day actions that generate revenue for a company, such as selling products or services.