Which of the Following Would Cause Prices to Drop

question 72

Multiple Choice

Which of the following would cause prices to drop?

• A)a demand for higher wages
• B)increased production by business
• C)increased taxes on business
• D)a reduction in the money supply
• E)high levels of demand by customers

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Definitions:

Operating Activities

Operating activities include the primary revenue-generating activities of an organization as reflected in its cash flow.

Inventory Account

An account representing the total cost of all unsold goods held by a company, including raw materials, work-in-progress, and finished goods.

Depreciation Expense

The distribution of a physical asset's cost over its lifespan, which mirrors the reduction in its value as time progresses.

Comparative Balance Sheet

Financial statements that present the balances of assets, liabilities, and equity at different points in time for comparison purposes.