The Theory That Holds That the Relative Values of Goods

question 87

Multiple Choice

The theory that holds that the relative values of goods and services are ultimately determined by the quantities of labor required in their production is the:

• A) capitalism theory.
• B) labor theory of value.
• C) marginal productivity theory.
• D) theory of surplus value.

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Definitions:

Carrying Amount

Also known as book value, this is the value of an asset as recorded in the company's balance sheet, after deducting accumulated depreciation or amortization.

Bond Discount Account

An account that shows the difference between the face value and the lower selling price of a bond, which is amortized over the life of the bond.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and equity.

Deduction

A deduction is an expense that can be subtracted from gross income in order to reduce the amount of income that is subject to tax.