The Withdrawals Account Is

question 118

Multiple Choice

The Withdrawals account is

• A) a revenue, and it has a normal debit balance.
• B) an expense, and it has a normal credit balance.
• C) a liability, and it has a normal debit balance.
• D) an owner's equity component, and it has a normal debit balance.

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Definitions:

Comparative Advantage

The ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another.

Specialize

The process of focusing effort and resources on a particular area of expertise or production to increase efficiency and output.

Production Possibility Frontiers

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, illustrating the trade-offs and opportunity costs.

Opportunity Cost

Abandoning potential gains available from alternative choices when one is picked.