If a Government Wanted to Increase the Prosperity of a Nation

question 166

Multiple Choice

If a government wanted to increase the prosperity of a nation, it could best serve this goal by

• A) protecting domestic industries from international trade, thus encouraging domestic growth.
• B) regulating the way in which firms can operate.
• C) reducing barriers that restrict the ability of potential competitors to enter markets.
• D) subsidizing firms that are in danger of going out of business.

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Definitions:

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting in the U.S.

Income Statement Accounts

The accounts that report the revenues, expenses, gains, and losses of a company, which are used to calculate the net income on the income statement.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check for accuracy.

List of Accounts

A comprehensive list that includes all of a company's accounts and account numbers used within its accounting system.