The Following Question Are Based on the Following Diagram

question 30

Multiple Choice

The following question are based on the following diagram:

-At the equilibrium price

• A) scarcity is eliminated.
• B) everyone is content.
• C) there is no inflation.
• D) price equals quantity.
• E) quantity demanded equals quantity supplied.

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Definitions:

Adjusting Journal Entry

A journal entry made at the end of an accounting period to record any unrecorded income or expenses for that period, ensuring that financial statements adhere to the accrual basis of accounting.

Revenue Account

An account that tracks the income earned from normal business operations.

Expense Account

An income statement account that represents the cost of goods sold, operating expenses, and non-operating expenses.

Income Statement

A financial report that shows the revenues, expenses, and profit or loss of a company over a specific accounting period.