Which Statement Is True

question 254

Multiple Choice

Which statement is true?

• A)A firm will always produce at an output corresponding to the minimum point of its ATC curve.
• B)Efficiency and profit maximization always occur at the same output.
• C)A firm will operate in the short run if total revenue is greater than variable costs.
• D)The rule for maximizing profits is different than the rule for minimizing losses.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, preparing the books for the next period.

Adjusting Entries

Journal entries made in accounting at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Unadjusted Trial Balance

A listing of all accounts in the general ledger with their balances before any adjustments are made for the end of the accounting period.

Drawing Account

A drawing account is used to track the money or goods withdrawn by the business owner for personal use from the business.