A Perfectly Competitive Market Has

question 7

Multiple Choice

A perfectly competitive market has

• A) only one seller.
• B) many buyers and sellers
• C) a few dominant sellers
• D) at least a few sellers

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Definitions:

Prepaid Rent

A payment made for rent before it is due, recorded as an asset on the balance sheet and expensed over the period of use.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Prepaid Insurance

The portion of an insurance premium that has been paid in advance and is recognized as an asset until it is used.

Accrued Salaries

Salaries that have been incurred but not yet paid, representing an expense for the company and a liability until the payment is made.