Which Statement Is the Most Accurate

question 181

Multiple Choice

Which statement is the most accurate?

• A)Ordering a pencil for work in a communist economy usually is less complicated than the same process in a capitalist economy.
• B)Rules and regulations bind Communist bureaucrats because there is no trust that a bureaucrat can make simple business decisions.
• C)Because of underlying trust,business flows smoothly in virtually all communist societies.
• D)Ordering a pencil for work is equally complicated in a capitalist and a communist business.

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Definitions:

Net Income

The net income of a business once all costs, taxes, and deductions are taken from the overall revenue.

Double Rule

A method used in accounting to underline totals for certain accounts or figures, indicating a sum or conclusion.

Closing Process

The series of steps performed at the end of an accounting period to prepare the books for the next period, including updating accounts and transferring balances.

Income Summary

An account in the ledger that aggregates all income and expense accounts to determine the net profit or loss for a certain period.