Which of the Following Is the Best Example of a Short-Run

question 83

Multiple Choice

Which of the following is the best example of a short-run adjustment?

• A)A local bakery purchases another commercial oven as part of its capacity expansion.
• B)Your local Walmart hires two more associates.
• C)Smith University completed negotiations to acquire a large piece of land to build its new library.
• D)Toyota builds a new assembly plant in Texas.

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Definitions:

Invoice

A document issued by a seller to a buyer that lists goods or services provided, their prices, and the total amount owed.

Prepaid Services

Expenses paid in advance for services which are to be received in the future.

Unearned Fees

Income received by a business for services not yet performed or goods not yet delivered.

Journalize

The process of recording transactions in a company's journal, detailing the financial transactions of a business in chronological order.