The Income Statement and Statement of Financial Position Columns of Reed

question 169

Multiple Choice

The income statement and statement of financial position columns of Reed Company's worksheet reflect the following totals: The net income (or loss) for the period is

• A) $45,000 income.
• B) $13,000 income.
• C) $13,000 loss.
• D) not determinable.

---

Definitions:

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments determined by private decision, and by prices, production, and the distribution of goods determined mainly by competition in a free market.

Command Economy

An economic system where key economic decisions, such as allocation and distribution of resources, are made by the government.

Production

The process of creating, manufacturing, or producing goods and services.

Distribution

The process of making a product or service available for use or consumption by a consumer or business user.