Which Is Not an Effect of a Price Floor

question 278

Multiple Choice

Which is not an effect of a price floor?

• A) misallocation of resources
• B) deregulation
• C) surpluses
• D) wasteful increases in quality

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Definitions:

Analyzing Business Transactions

The process of reviewing, categorizing, and interpreting the financial activities within a business to understand their impact on the financial statements.

Preparing Closing Entries

The procedure of transferring all income statement balances to permanent accounts at the end of an accounting period to prepare for the next period.

Fiscal Year

A one-year period that companies use for financial reporting and budgeting, which does not necessarily align with the calendar year.

Accounting Period

A specific period of time used by businesses to calculate their financial results and prepare financial statements, such as a month, quarter, or year.