Adjusting Entries Are

question 80

Multiple Choice

Adjusting entries are:

• A)a key element of accrual accounting.
• B)required in both accrual and cash-basis accounting.
• C)recorded only on the worksheet.
• D)recorded in the general journal but not on the worksheet.

---

Definitions:

Long Run

A period in economic theory where all factors of production and costs are variable, allowing companies to adjust to market conditions fully.

Perfect Competitor

A theoretical market structure where many firms sell an identical product, entry and exit from the market are easy, and no single seller can influence the market price.

Long Run

A period of time in which all factors of production and costs are variable, and companies can adjust all inputs.

Perfect Competitor

A theoretical market structure characterized by many buyers and sellers, freely available information, and no barriers to entry or exit.