Behaviour in Free- Market Economies Is

question 30

Multiple Choice

Behaviour in free- market economies is

• A)determined by a central authority.
• B)based primarily on custom and habit.
• C)random and unpredictable.
• D)mostly affected by elements of tradition and government command.
• E)mostly directed by self interest.

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Definitions:

Payroll Taxes

Financial obligations required from both employers and employees, usually based on a percentage of the compensation that employers distribute to their staff.

Rent Expense

The cost incurred by a company or individual for using a property or equipment owned by someone else.

Time Period Assumption

An accounting principle that allows the business operations to be divided into specific time periods for reporting purposes.

Revenue Recognition Principle

An accounting principle that dictates under what conditions revenue is recognized and determines when revenue is earned and recorded.