Which of the Following Statements About Advertising Is True

question 28

Multiple Choice

Which of the following statements about advertising is true?

• A)Advertising lowers the price of a product.
• B)Advertising lowers the total cost of obtaining a good.
• C)Advertising has no economic value.
• D)Advertising increases the opportunity cost of time.

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Definitions:

Post-closing Trial Balance

A financial statement prepared after closing entries are made, showing the balances of all ledger accounts at the end of an accounting period.

Permanent Accounts

Accounts that carry their ending balances over to the next accounting period and are not closed at the end of the financial year.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts, clearing the way for the next accounting period.