In a Market System, the Task of Assessing and Managing

question 89

Multiple Choice

In a market system, the task of assessing and managing the business risk of a firm is taken on by the firm's:

• A) Labor
• B) Capital suppliers
• C) Entrepreneurs
• D) Customers

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Definitions:

Permanent Accounts

Balance sheet accounts that carry their ending balances over into the next accounting period, such as assets, liabilities, and equity accounts.

Accumulated Depreciation-Equipment

The total depreciation that has been recorded against a company's equipment since it was put into service.

Depreciation Expense-Equipment

The allocation of an equipment's cost over its expected useful life to reflect its decrease in value over time.

Income Statement Columns

Sections in an income statement that categorize financial data into revenue, expenses, profits, and other relevant financial information for analysis.