Price Controls

question 14

Multiple Choice

Price controls:

• A) always produce the outcomes their architects anticipated or intended
• B) are imposed because policy makers believe market prices are unfair
• C) are imposed because policy makers believe market prices are inefficient
• D) are used to create revenue for public purposes

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Definitions:

Accrued Assets

Assets that are recognized on the balance sheet before they have been received or realized, often relating to income not yet received.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries from the end of the previous period, simplifying the record of new transactions.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances before producing financial statements, necessary for the accrual basis of accounting.

GAAP

Generally Accepted Accounting Principles; a collection of standardized guidelines and practices for financial accounting.