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MakcuM [25]
3 years ago
6

USLIUITTUITINCI 1

Business
1 answer:
MissTica3 years ago
8 0

Answer:

The correct answer is letter "B": Law of demand.

Explanation:

The law of demand establishes an inverse relationship between the quantity demanded of goods and services and their price. If the price increases, the quantity demanded will decrease (<em>the demand curve moves to the left</em>). In case the price decreases, the quantity demanded will increase (<em>the demand curve moves to the right</em>).

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The journal entry to record the declaration of the cash dividends involves a decrease (debit) to Retained Earnings (a stockholders' equity account) and an increase (credit) to Cash Dividends Payable (a liability account).

(opentextbc.ca)

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