I think a good situation would be when people would stop consuming pasta because they are currently planning to lose weight.
For restaurants that specialize in pasta would definitely be affected by the situation. They would definitely lower down the prices of their pasta specials. It would also affect the producers of pasta because of the decline of these restaurants. For the consumers' end, it would not affect them much because they can substitute pasta with another food which is healthier for them.
Answer: No
Explanation:
Accounting currently uses the Accrual basis and this is the best basis to use so far because it records revenue when they are earned not when the actual money comes in.
In doing this, the company is able to properly ascertain the revenue that it made in a particular period. If a company were to wait until collections were made, the company might wait for over one period to record their sales which would not be very helpful in calculating income for the period.
Also if companies waited to record only after sales, people not paying and becoming doubtful debts become a headache to record.
<span>When artists pass away, the supply of their paintings most likely becomes collector's item or a memorabilia. These items are thought to be of high value or importance especially when the artist is associated to a specific event in the history. The items are sold at high prices or are kept in a museum.</span>
Explanation: Research analysts use the income statement to compare year-on-year and quarter-on-quarter performance. One can infer whether a company's efforts in reducing the cost of sales helped it improve profits over time, or whether the management managed to keep a tab on operating expenses without compromising on profitability.
