When Accounting Profits Are Zero,which of the Following Is Most

question 30

Multiple Choice

When accounting profits are zero,which of the following is most likely to be true?

• A)Economic profits are negative.
• B)Economic profits could be zero.
• C)Economic profits could be positive.
• D)All of these are likely.

Identify the classifications and normal balance of specific accounts (Prepaid Insurance, Unearned Fees, Supplies Expense, Accumulated Depreciation).

Identify and apply adjusting entries for depreciation.

Recognize and adjust entries for supplies and inventory.

Record and adjust entries for prepaid expenses.

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