As the Controller of a Large Company,you Notice That the Cash

question 17

Multiple Choice

As the controller of a large company,you notice that the Cash Short or Over account is consistently debited for fairly large sums of cash when the petty cash fund is replenished.You probably will want to

• A)increase the amount of the fund.
• B)decrease the amount of the fund.
• C)find a new custodian for the fund.
• D)offer the custodian your congratulations.

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Definitions:

Economic Profits

The surplus or profit earned by a firm or individual after accounting for both explicit and implicit costs.

Purely Competitive Industry

An industry characterized by many small firms producing identical products where no single firm can influence the market price.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at given prices.

Increasing-Cost Industry

An industry in which production costs increase as output expands, often due to limited resources or rising input costs.