Accounts That Start a New Accounting Period with Zero Balances

question 91

True/False

Accounts that start a new accounting period with zero balances are referred to as temporary accounts and include both balance sheet and income statement accounts.

---

Definitions:

Fixed Cost

refers to expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Cell Phones

Portable electronic devices that allow for telecommunication over a network of stations without the need for a physical connection to a telephone line.

Output Level

The output level refers to the total amount of goods or services produced by an individual, firm, or economy at a given time.

Total Fixed Cost

The sum of all costs that do not change with the level of output, such as rent, salaries, and loan payments.