Figure 24-2 -Refer to Figure 24-2.Ceteris Paribus,a Decrease in the Expected Future

question 70

Multiple Choice

Figure 24-2
-Refer to Figure 24-2.Ceteris paribus,a decrease in the expected future price level would be represented by a movement from

• A)SRAS1 to SRAS2.
• B)SRAS2 to SRAS1.
• C)point A to point B.
• D)point B to point A.

---

Definitions:

Non-cash Charges

Expenses reported on the income statement that do not involve a direct cash outflow, such as depreciation or amortization.

Direct Materials Budget

A financial plan that estimates the cost of raw materials required for production.

Beginning Inventory

The value of goods available for sale or use at the start of an accounting period, carried over from the end of the previous period.

Budgets

Financial plans that estimate revenue and expenditures over a specific time period.