Which of the Following Properly Compares/contrasts Government and Markets

question 161

Multiple Choice

Which of the following properly compares/contrasts government and markets?

• A)Individuals in government generally know more than their counterparts outside of government.
• B)Individuals in government cannot help but act in the public interest.It is in their job description.
• C)When producers in markets act in their own self-interest, society benefits.This is not necessarily the case with government.
• D)Individuals in government act in the public interest, whereas individuals in markets act in their own self-interest.
• E)Individuals in government are taught to cooperate, whereas those outside government are taught to compete.

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Definitions:

Adjustment

Modifications made to account balances in order to correct financial statements or to allocate transactions correctly.

Accrual Accounting

An accounting method that recognizes revenue and expenses when they are incurred, not necessarily when cash is exchanged, enhancing the accuracy of financial statements.

Financial Statements

Formal records of the financial activities and position of a business, organization, or person, including balance sheets, income statements, and cash flow statements.

Adjusting Entries

Journal entries made in accounting to update the accounts and bring them to their correct balances before the preparation of financial statements.