Suppose You Like to Make,from Scratch,pies Filled with Banana Cream

question 119

Multiple Choice

Suppose you like to make,from scratch,pies filled with banana cream and vanilla pudding.You notice that the price of bananas has increased.As a result,your demand for vanilla pudding would

• A)decrease.
• B)increase.
• C)be unaffected.
• D)There is insufficient information given to answer the question.

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Definitions:

Adjustments

Journal entries made to correct or update accounting records and financial statements, often at the end of an accounting period.

Prepayment of Expenses

The payment for goods or services before they are received or consumed, often recorded as an asset on the balance sheet until used.

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred, ensuring that financial statements reflect accurate and up-to-date information.

Expense Accounts

Accounts used in accounting to track money spent or costs incurred in a business's operation, often categorized for budgeting and taxation purposes.