The Town of Fairness Has a Law Stating That Wages

question 22

Multiple Choice

The town of Fairness has a law stating that wages should be high enough to ensure that all people can afford to buy enough food for their families.The law that sets wages would be an example of a

• A) minimum wage law.
• B) fair wage law.
• C) price ceiling.
• D) black market price.
• E) ration price.

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Definitions:

Worksheet

An informal document used by accountants to prepare adjusting journal entries and to support the preparation of financial statements.

Beginning Inventory

The market value of products prepared for sale at the initiation of a bookkeeping period.

Merchandise Inventory

Goods or products that a company holds for the purpose of resale to customers, recorded as a current asset on the balance sheet.

Income Summary

is an account that aggregates all revenue and expenses during an accounting period, used to transfer the net income (or loss) to the capital account.