Which of These Accounts Would Normally Not Be Affected by an Adjustment

question 108

Multiple Choice

Which of these accounts would normally not be affected by an adjustment?

• A)Supplies.
• B)Revenues.
• C)Expenses.
• D)Cash.

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Definitions:

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing excess return over opportunity costs.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Assets

Items of value owned by individuals, companies, or governments, including tangible items like real estate and equipment, and intangible items like patents and trademarks.

Explicit Cost

Direct, out-of-pocket payments for goods or services that a company incurs in the course of doing business.