Resources That Flow Through the Circular Flow Model Include All

question 87

Multiple Choice

Resources that flow through the circular flow model include all of the following except :

• A) land.
• B) labor.
• C) capital.
• D) final goods.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare the ledger for the next period.

Financial Statements

Consolidated documents such as the balance sheet, income statement, and cash flow statement that summarize a company’s financial performance.

Adjusting Entries

journal entries made in an accounting system to update accounts for transactions that have not yet been recorded by the end of a period.

Accounting Equation

The fundamental equation of accounting stating that Assets = Liabilities + Shareholder's Equity, underpinning the double-entry bookkeeping system.