Which of the Following Items Describe the Two Classifications of Adjustments

question 179

Multiple Choice

Which of the following items describe the two classifications of adjustments?

• A)Postponements and advances.
• B)Accruals and advances.
• C)Deferrals and postponements.
• D)Accruals and deferrals.

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Definitions:

Marginal Cost

The extra cost incurred when one more unit of a product or service is produced.

Profit

The financial gain made in a transaction, calculated as the difference between the revenue earned and the costs incurred.

Drug Patent

Legal protection granted to the inventor of a new pharmaceutical, allowing exclusive rights to manufacture and sell the drug for a certain period.

Marginal Revenue

The additional revenue that a producer receives from selling one more unit of a good or service.