​Price Gouging

question 10

Multiple Choice

​Price gouging

• A)​Outlaw trade at prices above a certain price level
• B)Outlaw trade at prices below a certain price level
• C)Is an act of charging a high price to take advantage of shortages created by natural disasters
• D)​None of the above

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Definitions:

Net Income

The amount of money a company earns after deducting all its expenses, taxes, and losses from its total revenue.

Prior Period Adjustments

Prior period adjustments are corrections made to a company's financial statements for errors or omissions in previously reported periods.

Comprehensive Tax Allocation

A method of accounting that allows for the recognition of deferred tax liabilities and assets for future tax consequences of events that have been recognized in a business's financial statements or tax returns.

Deferred Method

A method of accounting where certain revenues or expenses are not recognized in the period they occur but are deferred to a later period.