Which of the Following Statements Is Not Correct

question 107

Multiple Choice

Which of the following statements is not correct?

• A)Some firms pay wages that are above the equilibrium wage.
• B)Workers sometimes form labor unions to push their wages up.
• C)Wages never deviate from the balance of supply and demand in the market for labor.
• D)The federal government mandates that employers pay their workers at least as much as the minimum wage.

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Definitions:

Depreciation Expense

The allocated portion of the cost of a tangible fixed asset that is charged as an expense in a reporting period, reflecting the usage and wear and tear of the asset.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been expensed to depreciation over the asset's useful life, reflecting how much of the asset's value has been used up.

Consolidation Worksheet

A tool used in preparing consolidated financial statements, allowing a company to adjust and eliminate the transactions among its controlled entities.

Plant

In terms of fixed assets, it refers to the buildings, machinery, equipment, and property used in the operations of a business.