Which of the Following Statements About Markets Is Not True

question 29

Multiple Choice

Which of the following statements about markets is not true?

• A)A market is an impersonal mechanism.
• B)Markets coordinate the independent decisions of buyers and sellers.
• C)Markets reduce the transaction costs of exchange.
• D)More specialized markets are generally found in urban areas.
• E)All markets provide the same amounts of information.

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Definitions:

Accounting Cycle

The complete process of collecting, recording, and processing financial transactions of a company, from when the transactions occur, to their representation in the financial statements.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made, used to prepare financial statements.

Temporary Accounts

Accounts used to record transactions during an accounting period, which are then transferred to permanent accounts at the end of the period.

Permanent Accounts

The balance sheet accounts that carry their ending balances into the next accounting period.