Figure 2-6 -Refer to Figure 2-6.If This Economy Devotes One-Half of Its

question 231

Multiple Choice

Figure 2-6
-Refer to Figure 2-6.If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows,it could produce

• A)120 pillows and 320 blankets.
• B)180 pillows and 180 blankets.
• C)240 pillows and 200 blankets.
• D)We would have to know the details of this economy's technology in order to determine this.

---

Definitions:

Adjusting Entries

At the close of a financial period, journal entries are created to distribute earnings and costs to the period in which they genuinely took place.

Adjusted Trial Balance

is a listing of all company accounts that will appear on the financial statements after making end-of-period adjustments.

Reversing Entry

An accounting entry made at the beginning of an accounting period to reverse or cancel out a previous adjusting entry.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.