If the Retained Earnings Account Is Debited for $4,000 in the Closing

question 221

True/False

If the Retained Earnings account is debited for $4,000 in the closing process,the company had a net income of $4,000.

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing companies to adjust to market changes fully.

Price Floor

A government-imposed minimum price charged on goods and services, aimed at preventing prices from going too low.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.

Non Binding Price Floor

A non binding price floor is set below the market equilibrium price, having no effect on the market because it does not restrict supply or demand.