Which of the Following Is Not One of the Three

question 159

Multiple Choice

Which of the following is not one of the three fundamental concepts of economics?

• A) profit maximization
• B) marginalism
• C) opportunity cost
• D) the working of efficient markets

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Definitions:

Prepaid Account

An account reflecting payments made in advance for goods or services, which are recognized as expenses when the goods or services are actually consumed.

Accounts Payable

Short-term liabilities representing amounts owed to suppliers or creditors for goods and services received but not yet paid for.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the accuracy of the entries.

Journal Entry

A record in accounting that represents a transaction, documenting the debit and credits affected by it.