Asphalt Is the Refined Residue from Crude Oil

question 261

Multiple Choice

Asphalt is the refined residue from crude oil. When gasoline prices are high, oil refiners pull every last drop of gasoline out of a barrel of crude. This would imply that higher gasoline prices mean a(n) :

• A) increased supply of asphalt, causing lower asphalt prices.
• B) increased supply of asphalt, causing higher asphalt prices.
• C) reduced supply of asphalt, causing lower asphalt prices.
• D) reduced supply of asphalt, causing higher asphalt prices.

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Definitions:

Post-closing Trial Balance

A financial report created after all adjusting and closing entries are made, showing account balances ready for the next accounting period.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the accounts for the next accounting period.

Correcting Entry

A journal entry made in the accounting records to amend an error or oversight in previously recorded transactions.

Accounts Payable

Financial obligations a company has to its suppliers, recorded as liabilities on the business’s financial statement.