A Trial Balance May Balance Even When Each of the Following

question 69

Multiple Choice

A trial balance may balance even when each of the following occurs except when

• A) a transaction is not journalized.
• B) a journal entry is posted twice.
• C) incorrect accounts are used in journalizing.
• D) a transposition error is made.

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Definitions:

Perfectly Competitive Firm

A theoretical business entity in an idealized market structure where no single firm can influence the price of its product, due to the presence of numerous sellers offering perfectly substitutable products.

Non-Price Competition

A market strategy where businesses attempt to attract customers through methods other than lowering prices, such as product differentiation and marketing.

Barriers

Obstacles or impediments that prevent or hinder access, movement, or progress within a particular area or context.

Perfect Competition

A market structure characterized by an infinite number of small firms, identical products, no barriers to entry or exit, and perfect information among buyers and sellers.