Shrimp Is an Increasingly Popular Part of the American Diet

question 416

Essay

Shrimp is an increasingly popular part of the American diet.Louisiana shrimpers who represent the bulk of the U.S.industry were almost all put out of business by Hurricane Katrina.How did this affect the equilibrium price and quantity of shrimp?

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Definitions:

Revenue Recognition

The accounting principle that dictates the process and timing of recognizing revenue in the financial statements, typically when it is earned and realizable.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting in a particular jurisdiction, notably the United States.

Cookie Jar Reserves

Accounting practices where companies set aside reserves during good financial periods to smooth out earnings in future, less favorable periods.

Estimated Obligations

The predicted liabilities or commitments a company expects to incur in the future, often found in financial planning and budgetary processes.