Economists Know That Consumers and Producers Are Both Made Better

question 104

Multiple Choice

Economists know that consumers and producers are both made better off than they would be without free exchange because the exchanges are

• A)mandated by government.
• B)voluntary.
• C)able to make consumers better off by an amount that compensates producers for their losses.
• D)able to make producers better off by an amount that compensates consumers for their losses.

Recognize the principles of revenue recognition and the matching principle as foundations of accrual accounting.

Grasp how deferred revenues and expenses are treated within the accounting cycle.

Know how adjusting entries affect both income statement and balance sheet accounts.

Understand the concept and accounting treatment of depreciation.