The Basic Accounting Flow Consists of the Following Events in What

question 10

Multiple Choice

The basic accounting flow consists of the following events in what sequence?
1) Post to general ledger
2) Business transactions occur
3) Financial statements are prepared
4) Journal entries are recorded

• A) 2, 4, 1, 3
• B) 2, 4, 3, 1
• C) 4, 2, 3, 1
• D) 4, 3, 1, 2

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Definitions:

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product demanded, leading to a stable market condition.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the point where the supply and demand curves intersect.

Supply Decreases

A situation where the quantity of a good or service that producers are willing and able to offer for sale at a given price is reduced.

Substitute Good

A product or service that can be used in place of another to satisfy consumer demand, offering an alternative choice.