Final answer:
The statement about the debiting and crediting of accounts upon the sale of goods is false. Instead, COGS is debited and Inventory is credited. Also, sellers might sell below equilibrium price for several market-driven reasons.
Step-by-step explanation:
The statement "When goods are sold, the cost of goods sold account is debited and work in process inventory account is credited" is false. Instead, when goods are sold, the Cost of Goods Sold (COGS) account is debited to record the cost associated with the sales made. Simultaneously, the Inventory account (or Finished Goods Inventory for a manufacturer) is credited to reflect the reduction in inventory as a result of the sale. The Work in Process Inventory account comes into play earlier in the accounting process, crediting this account when the goods are completed and debiting the Finished Goods Inventory account.
Sellers in the goods market may sometimes have reasons to sell for less than the equilibrium price. For instance, they might need to clear excess stock, respond to decreased demand, or stay competitive in the face of competitors' pricing strategies. The market is dynamic and various factors can influence selling strategies.