An Order to Buy Shares of Stock at a Stated

question 20

Multiple Choice

An order to buy shares of stock at a stated price or less is called a________ order.

• A)limit
• B)stop
• C)market
• D)short
• E)bid

Record and understand adjusting entries for accrued revenues and expenses.

Calculate and record depreciation as an adjusting entry.

Journalize adjustments for supplies and insurance policies.

Understand the purpose and process of recording adjusting entries in the accounting cycle.

---

Definitions:

Coordinating Orders

The process of ensuring that orders from different customers or for various products are managed in a way that optimizes resources and delivery times.

Fixed Ordering Cost

The constant expense associated with placing an order, regardless of the order size, including administrative expenses and fees.

Material Cost

The expense incurred in acquiring the raw materials needed to produce a good, often a significant portion of total production costs.

Holding Cost

The expenses associated with storing unsold goods, including storage, insurance, and deteriorating costs.