Which of the Following Is True

question 68

Multiple Choice

Which of the following is true?

• A) When resources are allocated on the basis of personal characteristics, all people who are willing and able to pay the price get the resource.
• B) When the range of activities to be monitored is large and complex, a command system allocates resources better than a market price.
• C) When a market price allocates resources, some people who are willing and able to pay that price don't get the resource.
• D) Force helps support the legal system on which markets function.

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Definitions:

Posting

The process of transferring entries from the journal to the respective accounts in the ledger.

Journal Entries

Records in accounting that document every transaction affecting a company's financial position, detailing debits and credits to accounts.

Ledger Accounts

Individual records for each account in a company's financial statements, tracking all transactions affecting that account.

Chart of Accounts

An organized list of all the accounts in a company's general ledger which are used to categorize transactions.