When One Party to a Transaction Has More Information About

question 47

Multiple Choice

When one party to a transaction has more information about the characteristics of the good or service to be trade than does the other party,economists say that information is:

• A) uneven.
• B) asymmetric.
• C) imperfect.
• D) disequilibriated.

---

Definitions:

Adjusting Entries

Documentation in accounting made at the termination of an accounting cycle to allot income and spending to the span in which they factually occurred.

Debit Total

The sum of all debit entries made in an account or ledger over a specific period.

Credit Total

The sum of all credit transactions in an accounting period, representing the amount owed by a business to its creditors.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.