[Solved] If P < AC in a given industry, then: A) there are too many resources in that industry. B) there are too few resources in that industry. C) the industry has the optimal amount of resources. D) it is not possible to determine whether the industry has the optimal amount of resources. Straight-Line Depreciation: An approach to evenly spread the cost of a tangible asset throughout its period of use. Time Period Assumption: The accounting principle that allows the business operations to be divided into specific time periods such as months, quarters, or years for reporting purposes. Accrual Basis Accounting: An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash transaction actually takes place. This method provides a more accurate picture of a company's financial condition than cash basis accounting. Expense Recognition: The accounting principle that expenses should be recorded in the period in which they are incurred, matching them with the revenues they help to generate.