Answer:
Price decreases and demand increases
Explanation:
After achieving a required profit, stores usually start to sell their products on sale. A sale is an opportunity for the buyers to buy goods and services at low prices. Price and demand have an inverse relationship, that is why, on sale, the price decreases and moves the point down, whereas, the increase in the demand moves the point up.
Answer:
Assets will be overstated and Net Income understated
Explanation:
The effect on the balance sheet and income statement
<u>Balance Sheet :</u>
Inventory will be overstated
Inventory belongs to the Current Asset group
Meaning Assets will be overstated
<u>Income Statement :</u>
Inventory will be overstated
This reduces cost of sales with an amount greater
Meaning Profits will be overstated
Conclusion
The effect on the balance sheet and income statement would be : Assets will be overstated and Net Income understated.
When a company buys something on credit it increases account payable, and when a company sells on credit it will increase their account receivable.
The main mechanism that regulates the market system is the
government. It is because they are the one that sets up and regulates the
system and allows the mechanism of the system to continue as the government is
the one that enforces and controls the demand and supply in the market system.
<span>approximately $6,000 annually</span>
