Reporting the Financial Condition of a Business at a Point

question 80

Multiple Choice

Reporting the financial condition of a business at a point in time and the changes in the financial condition of a business over a period of time are the two major objectives of:

• A)tax accounting.
• B)union contracts.
• C)managerial accounting.
• D)financial accounting.

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Definitions:

Price Elastic

A term referring to the responsiveness of the demand or supply of a good or service to changes in its price.

Harvest

The process or period of gathering in crops.

Market Conditions

Refers to the various economic and market factors influencing the buying and selling dynamics in a particular market at any given time.

Elasticity of Demand

A gauge of the responsiveness of the amount of a product consumers want to buy to shifts in its price, evidencing how changes in cost affect demand.