Match the Terms Below with the Correct Definitions

question 93

Multiple Choice

Match the terms below with the correct definitions.
-An account debited when goods are bought for resale (using the periodic inventory system)

• A)Unearned Revenue
• B)Income Summary
• C)First merchandise inventory adjusting entry (periodic system)
• D)Beginning merchandise inventory
• E)Ending merchandise inventory
• F)Periodic inventory system
• G)Wages Payable
• H)Wages Expense
• I)Purchases
• J)Second merchandise inventory adjusting entry (periodic system)

Apply the principle of marginal analysis to firm decision-making in purely competitive markets.

Determine the conditions under which a firm should continue production or shut down in the short run.

Understand the relationship between price, average revenue, marginal cost, and marginal revenue in the determination of production levels.

Calculate economic profits or losses based on price, average cost, and output levels.