The Problem of Determining What Goods and Services Society Should

question 42

Multiple Choice

The problem of determining what goods and services society should produce:

• A) exists because we can produce more than we need or want.
• B) exists because there are not enough resources to provide all the goods and services that people want to purchase.
• C) would not exist if all goods and services were scarce.
• D) would not exist if government owned all of the resources.

Understand the implications of liabilities and equity on a company's financial health.

Recognize the importance and components of the statement of changes in equity.

Learn about the relationship between expenses, revenues, assets, and liabilities.

Understand the impact of shareholder transactions and policies on a company’s finances.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, preparing the books for the next period.

Adjusting Entries

Journal entries made in accounting at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Unadjusted Trial Balance

A listing of all accounts in the general ledger with their balances before any adjustments are made for the end of the accounting period.

Drawing Account

A drawing account is used to track the money or goods withdrawn by the business owner for personal use from the business.