The Indirect Ownership of Physical Capital Refers to Households Owning

question 409

Multiple Choice

The indirect ownership of physical capital refers to households owning:

• A)cash.
• B)stock.
• C)savings accounts.
• D)their house.

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.

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Definitions:

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