Wheat Is Used to Produce Cereal

question 64

Multiple Choice

Wheat is used to produce cereal.When the price of wheat falls,the

• A) demand for wheat increases.
• B) supply of wheat decreases.
• C) supply of cereal increases.
• D) demand for cereal increases.
• E) demand for cereal decreases.

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Definitions:

Days' Cash

The average number of days a company takes to collect cash from its sales.

Fiscal Year

A 12-month period that a company or government uses for accounting purposes and preparing financial statements, which may not align with the calendar year.

Liquidity Position

A financial metric used to determine how easily a company can pay off its short-term liabilities with its liquid assets.

Depreciation

The method in accounting of distributing a physical asset's cost throughout its service life.