Assume a Company Only Entered into Financing and Investing Activities

question 82

Multiple Choice

Assume a company only entered into financing and investing activities and has prepared its journal entries and posted them to T-accounts.How would the related account balances be listed on its trial balance?

• A)Credits first,followed by debits
• B)Debits first,followed by credits
• C)Alphabetically
• D)In descending order by dollar amount

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Definitions:

Aggregate Supply Curve

A graph that shows the relationship between the overall price level in the economy and the total output produced by firms, holding all else constant.

Price Level

Price Level is a measure of the average prices of goods and services in an economy, indicating the purchasing power of the currency and cost of living.

Real GDP

Real GDP, or Gross Domestic Product adjusted for inflation, measures the value of all final goods and services produced within a country in a given period, accounting for changes in price level.

Classical Economists

Economists of the late 18th and 19th centuries who believed in free markets, minimal government intervention, and the importance of competition.