A Supplier Invoice Will Not Show -

question 10

Multiple Choice

A supplier invoice will not show -

• A) the description and prices for two items purchased on account
• B) the HST code H (HST @ 13% tax not included in price)
• C) the HST rate is incorrect
• D) the asset purchases have been charged to the appropriate accounts

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and inputs in a market are fully adjusted to any economic changes, showing no tendency for further adjustment.

Competitive Price-Searcher Market

A market in which the firms have a downward-sloping demand curve, and entry into and exit from the market are relatively easy.

Positive Economic Profit

Earnings that exceed both the explicit and implicit costs of a company, indicating a financial gain beyond the normal expectations of profit.

Maximum Economic Profit

The highest possible financial gain obtainable by a firm when total revenue exceeds both explicit and implicit costs.