If a Regulatory Action by a Government Destroys Half the Value

question 182

True/False

If a regulatory action by a government destroys half the value of a person's property, the Supreme Court has held that the property owner must receive compensation under the Takings Clause.

---

Definitions:

Adjusting Entries

Accounting entries made to adjust the books of accounts to reflect the true financial position and performance of a company at the end of a financial period.

Salaries Expense

The total amount recorded by a company for the salaries of its employees.

Salaries Payable

An account reflecting the debts to workers for performed but unpaid work.

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, ultimately resetting the balances of temporary accounts to zero.