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7 Cards in this Set
- Front
- Back
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The Law of Demand says...
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...All other things being the same, the lower the price of a product, the more of it consumers will purchase
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Price elasticity of demand is...
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...percentage change in quantity brought about by a 1 percent change in price
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The Cash basis of accounting...
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... recognizes revenue and gains when cash is received and expenses and losses when cash is paid
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The Accrual basis of accounting...
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...recognizes revenue when goods are sold and services are rendered and recognizes expenses in the same period as the revenues that those costs helped to produce
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Definition: Revenue
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Gross inflow of assets to the firm or reduction in its liabilities that are reoccurring or continuing in nature
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Definition: Expenses
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Gross outflow of assets or the incurring of liabilities during a period as a result of the delivery or production of goods, the rendering of services, or other earnings activities
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Definition: Gains
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Net inflows causing increases in equity or net assets that result from peripheral or incidental transactions of an entity
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