Unlike Market-Based Systems, Command-Based Systems

question 14

Multiple Choice

Unlike market-based systems, command-based systems:

• A) give individuals the right to generate personal wealth from their capital.
• B) encourage businesses to determine how much they privately consume and invest in the economy.
• C) value the individual above the collective.
• D) allocate investment, production, and consumption based on a central plan.

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Definitions:

T Accounts

A graphical representation of a general ledger account that is used for teaching, analysis, and management of accounts.

Statement of Owner's Equity

A financial statement detailing changes in the owner's equity of a company over a specific period, including contributions, withdrawals, and the net income or loss.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Adjustments

At the close of an accounting period, records are adjusted to attribute revenues and expenses to the timeframe in which they truly happened.