The Balance in a Revenue Account at the Beginning of an Accounting

question 29

Multiple Choice

The balance in a revenue account at the beginning of an accounting period will always be

• A)zero.
• B)last period's ending balance.
• C)higher than the previous periods beginning balance.
• D)equal to the amount of retained earnings for the previous period.

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Definitions:

Technology Spillovers

The positive externality that occurs when technological advancements or innovations benefit firms or sectors beyond the inventor or innovator.

Industrial Policy

Government-driven programs and policies aimed at improving the competitiveness and capabilities of domestic industries and sectors.

Subsidies

Financial assistance provided by the government to individuals or businesses to support economic activities deemed beneficial for the public.

Socially Optimal

A state in which resources are allocated in the most efficient way from a societal perspective, maximizing overall welfare or social utility.