Which of the Following Is a Principle Concerning How People

question 38

Multiple Choice

Which of the following is a principle concerning how people interact?

• A)Markets are usually a good way to organize economic activity.
• B)Rational people think at the margin.
• C)People respond to incentives.
• D)All of the above are correct.

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Definitions:

Adjusted Trial Balance

A compilation of all accounts along with their adjusted balances, employed for the creation of financial reports.

Adjusting Entries

Journal entries made at the end of an accounting period to update the accounts and ensure that the reported financial statements are accurate and complete.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and costs, from its total revenues.

Accrued Revenue

Revenue that has been earned but not yet received, typically recorded with an adjusting journal entry.