There Are Four Closing Entries

question 22

Multiple Choice

There are four closing entries. The first one is to close revenues, the second one is to close expenses, the third one is to close ____, and the last one is to close the ____.

• A) Income Summary; dividends account
• B) Income Summary; common stock account
• C) Income Summary; assets
• D) dividends account; Income Summary

Understand the conditions under which firms in a competitive market earn zero economic profit in the long run.

Identify the impact of factor prices on the market supply curve in the long term.

Understand the concept of a constant cost industry and its characteristics.

Explain the effects of short-run profit on market dynamics and long-run equilibrium in price-taker industries.

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Definitions:

Comparison Groups

Reference groups used to evaluate or benchmark the outcomes, behaviors, or characteristics in a study or negotiation context.

Offensive Behavior

Refers to actions or remarks that are hurtful, inappropriate, or cause discomfort to others.

Manipulating

Influencing or controlling something or someone to one's advantage, often in a manner that is considered deceitful or unfair.

Synchronized De-escalation

A coordinated approach by all involved parties to progressively reduce tensions and conflict intensity in a systematic manner.