If, as a Person Consumes More and More of a Good

question 77

Multiple Choice

If, as a person consumes more and more of a good, each additional unit adds less satisfaction than the previous unit consumed, we are seeing the workings of

• A)the law of demand.
• B)the law of supply.
• C)the law of increasing marginal opportunity cost.
• D)the law of diminishing marginal utility.

Recognize the importance of time value of money in financial planning.

Identify and develop personal financial goals and understand the financial planning process.

Understand the components and importance of financial planning.

Recognize the steps in the financial planning process and their significance.

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Definitions:

Retrospective Approach

The retrospective approach involves revising previously issued financial statements to reflect changes in accounting policy as if the new policy had always been in effect.

Change In Accounting Principle

An adjustment made to the accounting methods used by a company, requiring retrospective restatement of prior financial statements to reflect the new principle.

Disclosure Rules

These are regulations requiring companies to provide full, fair, and timely Disclosure of financial statements and other significant information.

Comprehensive Income

Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.