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Externalization Can Have Which of the Following Beneficial Effects

question 22

Multiple Choice

Externalization can have which of the following beneficial effects?

Identify the normal balance for various accounts.
Recognize which financial statement reports specific account balances.
Differentiate between permanent and temporary accounts.
Prepare journal entries for transactions involving purchases, returns, and payments.

Definitions:

Prices

The amount of money expected, required, or given in exchange for goods or services.

Marginal Rate

The rate of change in cost or benefit resulting from a particular increase in volume or activity.

Consumption

The use of goods and services by households, which is a primary component in calculating a country's gross domestic product (GDP).

Marginal Utilities

The additional satisfaction or utility gained from consuming one more unit of a good or service.

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