In the Long Run

question 27

Multiple Choice

In the long run:

• A) all inputs are fixed.
• B) all inputs are variable.
• C) some inputs are not variable.
• D) per-unit costs are fixed.

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Definitions:

Owner's Withdrawals

Money or other assets taken from the business by the owner for personal use.

Income Statement

An income statement is a financial report that shows a company's revenues, expenses, and profit over a specific period, illustrating its financial performance.

Balance Sheet

An overview report showing a business's assets, liabilities, and equity held by shareholders at a specific time.

Adjusted Trial Balance

A statement of all debits and credits in a double-entry accounting system, adjusted for any journal entries, used to verify the balance of accounts before producing financial statements.