The Account Type and Normal Balance of Prepaid Expense Is

question 118

Multiple Choice

The account type and normal balance of Prepaid Expense is

• A) revenue, credit
• B) expense, debit
• C) liability, credit
• D) asset, debit

---

Definitions:

Four-Firm Concentration Ratio

An economic metric that assesses the market power of the four largest firms in an industry, expressed as a percentage of total market sales.

Pure Competition

A market structure characterized by a large number of small firms selling identical products, with no single seller having a significant influence on market price.

Oligopoly

A market structure characterized by a small number of large firms dominating the market, leading to limited competition.

Mutually Cancelling Advertising

Mutually cancelling advertising refers to a situation where the competitive advertising efforts of firms negate each other's impact, leading to no significant change in market share.