An Assumption of the Model of Perfect Competition Is

question 272

Multiple Choice

An assumption of the model of perfect competition is:

• A)discrimination.
• B)difficult entry and exit.
• C)many buyers and sellers.
• D)limited information.

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Definitions:

Cost of Merchandise Sold

The total cost of goods that have been sold during a specific period, including purchase price, transportation, and handling charges, less any discounts or allowances.

Cash Payment

The act of settling a debt or paying for goods or services with cash or equivalent instruments, such as checks.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from operating activities is used instead of adjustments to net income.

Revenues

income that a business receives from its normal business activities, usually from the sale of goods and services to customers.