Profits in the Short Run Attract Resources to Industries in the Long

question 264

True/False

Profits in the short run attract resources to industries in the long run, allowing them to expand.

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Definitions:

Income Tax Expense

The amount of money a company owes in taxes based on its taxable income for a given period.

Income Taxes Payable

Represents the amount of taxes on income that a company owes to the government but has not yet paid.

Accounts Payable

Short-term financial obligations to suppliers or creditors for goods and services received but not yet paid for.

Equipment

Tangible assets used in the operation of a business, not intended for sale.