Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AICPA Exam CPA-Business Topic 1 Question 107 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 107
Topic #: 1
[All CPA-Business Questions]

A city ordinance that freezes rent prices may cause:

Show Suggested Answer Hide Answer
Suggested Answer: C

Choice 'c' is correct. Return on investment equals net income divided by average invested capital:

Choices 'a', 'b', and 'd' are incorrect, per the above calculation.


by Emerson at Feb 07, 2025, 08:11 PM

Limited Time Offer

25%

Off

Get Premium CPA-Business Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Domitila
16 days ago
I don't know about you, but I'd rather be a landlord than a renter in this scenario. Talk about a captive market!
upvoted 0 times
...
Alva
18 days ago
Ah, the old rent freeze conundrum. I'm going to have to go with C on this one. Grab your popcorn and watch the lines for rental space grow!
upvoted 0 times
...
Gilbert
21 days ago
This is a tricky one, but I'm going with B. The rent freeze will reduce the incentive for landlords to supply rental space, causing the supply curve to rise.
upvoted 0 times
...
Wilson
2 months ago
D seems more likely to me. The rent freeze will limit the supply of rental space, causing the quantity supplied to exceed the quantity demanded.
upvoted 0 times
Nicholle
13 days ago
That makes sense. If there's a rent freeze, landlords may not want to rent out their properties, leading to an excess supply.
upvoted 0 times
...
Nicholle
15 days ago
I think D is correct. The rent freeze will definitely limit the supply of rental space.
upvoted 0 times
...
...
Ozell
2 months ago
That's true, it could create a shortage of rental space.
upvoted 0 times
...
Tasia
2 months ago
I think the correct answer is C. A rent freeze will cause the quantity demanded to exceed the quantity supplied, leading to a shortage of rental space.
upvoted 0 times
...
Margarett
2 months ago
But wouldn't it also lead to the quantity demanded exceeding the quantity supplied?
upvoted 0 times
...
Ozell
2 months ago
I think a rent freeze may cause the demand curve to fall.
upvoted 0 times
...

Save Cancel