Which Statement Is True

question 62

Multiple Choice

Which statement is true?

• A)Prices are high because rents are high.
• B)Profits are determined by supply and demand.
• C)If there were no inflation,$1 today would be worth more than $1 received in the future.
• D)Aristotle favored high interest rates as a reward for saving.

---

Definitions:

Incremental Sales

The additional revenue generated from a particular marketing or sales activity, beyond the ordinary sales figures.

Cash Operating Expenses

Expenses that a company must pay out in cash, such as salaries, utilities, and rent, related to its operational activities.

Incremental Sales

The addition to total sales generated by a specific business activity or decision, beyond what would have otherwise been achieved.

Income Tax Expense

The cost charged against earnings from operations and other activities, representing the amount of income taxes owed to governmental authorities.