The Social Arrangements That Govern the Ownership, Use, and Disposal

question 9

Multiple Choice

The social arrangements that govern the ownership, use, and disposal of property are referred to as

• A) the double coincidence of wants.
• B) capitalism.
• C) private enterprise.
• D) property rights.

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Definitions:

Net Income

Profit calculated as the difference between total revenues and total expenses, indicating the financial performance of a company over a period.

General Ledger

A complete record of all financial transactions over the life of a company, used to compile the financial statements.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made for accruals, deferrals, and other adjustments.

Closing Entries

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