Which of the Following Statements Is False

question 85

Multiple Choice

Which of the following statements is false?

• A) Decisions about what to produce in the former Soviet Union were made primarily by political leaders.
• B) Soviet planners consistently set prices that were too high, and this led to severe shortages.
• C) Soviet plant managers lacked incentives to adopt new technologies.
• D) Soviet plant managers lacked incentives to cut costs.

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Definitions:

Withdrawals Account

A Withdrawals Account tracks the money or assets taken out of a business by its owner(s) for personal use, affecting the owner's equity balance.

Owner's Capital

The amount of equity belonging to the owner of a business, reflecting investments and accumulated earnings.

Income Summary

An accounting tool used to aggregate all income and expense accounts to determine net income or loss for a period.

Revenue

Income that a company receives from its normal business activities, usually from the sale of goods and services to customers.