A System Where the Basic Economic Questions Are Determined, at Least

question 96

Multiple Choice

A system where the basic economic questions are determined, at least to some degree, through centralized government planning is referred to as a ____ economy.

• A) command
• B) capitalistic
• C) mixed
• D) laissez-faire
• E) communal

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Definitions:

Income Summary

A temporary account used in closing process to summarize the results of a period's revenues and expenses.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Closing Entry

An accounting action that transfers the balances from temporary accounts to permanent ones at the end of an accounting period.

Owner's Equity

The residual interest in the assets of an enterprise after deducting its liabilities; represents the owner's claims against the company's assets.