A Drought Causes Most Fruit Crops to Fail,decreasing the Amount

question 115

Multiple Choice

A drought causes most fruit crops to fail,decreasing the amount of available fruit.The fruitcake market would see:

• A) an increase in the supply of fruitcake.
• B) a decrease in the supply of fruitcake.
• C) no change in the supply of fruitcake, but the demand would increase.
• D) no change in the supply of fruitcake, but the demand would decrease.

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Definitions:

Operating Leases

Leases where the lessor retains substantial risks and rewards of ownership of the asset while leasing it to the lessee.

Note Disclosure

Informative notes accompanying financial statements, explaining the basis of preparation and detailing specific accounting policies.

Capital Lease

A long-term lease agreement that is classified as a purchase by the lessee for accounting purposes because it effectively transfers substantially all the risks and rewards of ownership.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.