The Company Uses Up $5,000 of an Existing Asset and the Company

question 1

Multiple Choice

The company uses up $5,000 of an existing asset and the company adjusts its accounts accordingly.This is an example of a(n) :

• A)accrual adjustment.
• B)closing adjustment.
• C)deferral adjustment.
• D)unethical adjustment.

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Definitions:

Means of Production

The tools, machinery, facilities, and resources used to produce goods and services, often discussed in the context of economic systems and ownership.

Communism

A system of government that eliminates private property; it is the most extreme form of socialism, because all citizens work for the government and there are no class distinctions.

Extreme Form

A manifestation of a phenomenon or condition at its most intense or severe degree.

Socialism

An economic and political system where the production, distribution, and exchange of goods and services are regulated or owned by the community as a whole or the state.