What Are Barriers to Entry

question 86

Multiple Choice

What are barriers to entry?

• A)Toll highways which make transportation costs very high.
• B)Tariffs imposed on imported goods.
• C)Obstacles that make it difficult for new participants to enter an industry.
• D)Quotas imposed on imported goods.

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Definitions:

Previous GAAP

The Generally Accepted Accounting Principles that were in place before the current set or version was adopted.

Recognize Assets

The process of recording an item in the financial statements as an asset, acknowledging its probable future economic benefits.

Derecognize

The removal of an asset or liability from a company's financial statements, often due to it being sold, fully depreciated, or disposed of.

Reclassify Items

The process of moving accounting entries from one ledger or category to another to correct or clarify financial statements during the preparation process.