Which of the Following Are Not Characteristics of a Competitive

question 71

Multiple Choice

Which of the following are not characteristics of a competitive market?

• A) There is freedom of entry and exit.
• B) There are zero transaction costs.
• C) There are only one or two sellers.
• D) Buyers and sellers have complete information.

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Definitions:

Adjustments

Entries made in accounting records to correct errors or allocate revenues and expenses to the appropriate accounting period.

Depreciation

The procedure of distributing the cost of a solid asset over the time it is considered useful.

Accrual Basis

A system in bookkeeping where earnings and expenses are documented at the point of transaction, not necessarily when cash exchanges hands.

Cash Basis

An accounting method that recognizes revenues and expenses only when cash is received or paid, as opposed to the accrual basis accounting.