Entries Required to Close the Balances of the Temporary Accounts

question 137

True/False

Entries required to close the balances of the temporary accounts at the end of the period are called final entries.

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Definitions:

Excess Demand

A market condition in which the quantity demanded of a product exceeds the quantity supplied at a given price.

Nonprice Ration

Distributing or allocating goods based on criteria other than price, such as need or merit.

Short Run

A period in which at least one input (such as plant size) is fixed, and only the variable inputs can be adjusted.

Price System

An economic mechanism that uses prices arising from supply and demand interactions to communicate information to help guide the allocation of resources.