Which of the Following Is a Long-Run Adjustment

question 33

Multiple Choice

Which of the following is a long-run adjustment?

• A) A firm lays off two workers.
• B) Two firms exit the asbestos removal industry.
• C) A manufacturer increases its purchase of raw materials.
• D) A farmer buys twice her usual amount of herbicide.

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Definitions:

Accounts Receivable

This term refers to the money that is owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Credit Sales

Sales made by a business where payment is delayed, allowing the buyer to purchase goods or services on credit.

Month of Sale

The specific month in which a sale transaction was completed or recognized for accounting or reporting purposes.

Collections

Collections refer to the process of pursuing payments of debts owed by individuals or businesses, often conducted by dedicated departments or external agencies.