-The Above Figures Show the Market for Oranges

question 488

Multiple Choice

-The above figures show the market for oranges. Which figure(s) shows the effect of an increase in the price of bananas, a substitute for oranges?

• A) Figure A
• B) Figure C
• C) Figure D
• D) Figure A and C

---

Definitions:

Receivables

Amounts due to a company for goods or services that have been provided but not yet paid for by the customers.

Accrue Expenses

The recording of expenses that have been incurred but not yet paid, reflecting obligations on the balance sheet.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions, deferred taxes, and changes in working capital to calculate cash flow from operating activities.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to account for declines in value over time.