Diamonds Have Been Able to Keep Prices High Primarily Through

question 147

Multiple Choice

Diamonds have been able to keep prices high primarily through

• A) successful advertising.
• B) successful cartel behavior.
• C) misinformation.
• D) new diamond discoveries.

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Definitions:

Expenses

Costs incurred by a business or individual in the process of earning revenue, ranging from utilities to salaries.

Drawing Account

An account used to record withdrawals made by an owner from the business for personal use.

Owner's Capital Account

An equity account that represents the owner's invested capital plus any retained earnings or minus any withdrawals.

First Closing Entry

The first journal entry in the closing process that transfers revenue and the expense account balances to the owner’s capital account as either a net income or a net loss.