Which of the Following Is the Largest Fixed Expense Associated

question 77

Multiple Choice

Which of the following is the largest fixed expense associated with a new automobile?

• A)Insurance
• B)Gasoline
• C)Registration,license,and fees
• D)Parking
• E)Depreciation

---

Definitions:

Permanent Accounts

Accounts that carry their ending balances over to the next fiscal year, including asset, liability, and equity accounts, foundational for understanding a company's financial health.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, listing assets, liabilities, and equity.

Final Entries

The journal entries recorded at the end of an accounting period to prepare accounts for the next period or for the preparation of financial statements.

Temporary Accounts

Accounts used to collect information during a specific accounting period and are closed at its end, such as revenues, expenses, and dividends accounts.