Tra Corporation Is Analyzing Its Account Balances for 2020

question 79

Multiple Choice

Tra Corporation is analyzing its account balances for 2020.As of the end of 2020, a debit balance of $4,000 remains in the Manufacturing Overhead account.What impact will this have on the financial statements?

• A)It will increase assets by $4,000 and have no effect on income.
• B)It will increase income by $4,000.
• C)It will reduce income by $4,000.
• D)It will decrease gross profit but have no effect on income.

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Definitions:

Neoliberalism

An economic philosophy that argues for the sovereignty of the free market without any government intervention. The sole responsibility of a company is to make a profit for its shareholders. To maximize the social good, the model of the market must be extended to all realms of society.

Market Speculation

The act of trading in an asset, or conducting a financial transaction, that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain.

Mass Migrations

Large-scale movements of groups of people from one geographical area to another, often resulting from factors like conflict, natural disasters, or economic opportunities.

Privatization

The process of transferring ownership or the operation of services and assets from the government to the private sector.