Excess Capacity Typically Occurs

question 24

Multiple Choice

Excess capacity typically occurs

• A)in the short run in perfect competition
• B)in the short run in monopolistic competition
• C)in long-run equilibrium in perfect competition
• D)in long-run equilibrium in monopolistic competition
• E)usually in markets experiencing an increase in demand

Recognize noncash investing and financing activities and their disclosure.

Correctly classify the sale and purchase of investments and their impact on cash flow.

Adjust reported net income for non-cash expenses and gains or losses on sales of assets.

Understand the direct method for reporting cash flows from operating activities.

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Definitions:

Bedrock

The layer of solid rock located beneath the surface soil or sediment, acting as a foundation for terrestrial landscapes.

Climate

The long-term pattern of weather in an area, typically averaged over a period of 30 years.

Dam

A structure built across a river or stream to control the flow of water.

Erosion

The process by which natural forces like water, wind, ice, and gravity wear away land surfaces, redistributing the materials.