Which of the Following Is an Example of an Adjusting

question 57

Multiple Choice

Which of the following is an example of an adjusting entry?

• A)Recording the increase in the market value of land.
• B)Recording the salary expense earned in the last week of the year, to be paid next year.
• C)Recording the receipt of inventory in the last week of the year that will be paid next year.
• D)Recording the payment of year-end dividends.

---

Definitions:

Price Taker

Firm that has no influence over market price and thus takes the price as given.

Competitive Firm

A company operating in a market where it must compete with other firms for customers, often leading to innovation and efficient practices.

Market Price

The ongoing market rate for buying or selling an asset or service.

Highly Competitive

A market structure characterized by a large number of small firms, free entry and exit, and a high level of competition where no single firm can significantly influence market prices.