Since Resources Are Abundant, We Do Not Have to Make

question 72

True/False

Since resources are abundant, we do not have to make choices about their use.

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Definitions:

Operating Cycle

The operating cycle is the duration of time it takes for a company to purchase inventory, sell it, and convert the sales into cash.

Cash

A form of liquid asset that represents immediate purchasing power and can be used for transactions.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary accounts' balances to permanent accounts, thereby resetting the temporary accounts for the next period.

Revenue Accounts

Accounts that track the income a company generates from its normal business activities, such as sales of goods or services.