Suppose Over the Last Five Years That the Price of Recycled

question 63

Multiple Choice

Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton.Over the same time a measure of the overall price level increased from 120 to 138.The real price of recycled aluminum

• A)increased,so it became scarcer
• B)increased,so it became less scarce
• C)decreased,so it became scarcer
• D)decreased,so it became less scarce

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Definitions:

Adjusting Events

Events after the balance sheet date that provide further evidence of conditions that existed at the end of the reporting period, requiring adjustments to financial statements.

Non-Adjusting Events

Events after the reporting period that do not provide new information about conditions existing at the end of the reporting period.

AASB 108

The Australian Accounting Standards Board standard outlining the procedures for making accounting policy changes, correcting errors, and making estimates.