Postings Are Made Daily to Subsidiary Ledgers So That

question 59

Multiple Choice

Postings are made daily to subsidiary ledgers so that

• A) employees are kept busy.
• B) debits equal credits.
• C) individual account information is kept current.
• D) the control account will balance to the subsidiary ledger.

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Definitions:

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is produced up to the point where the last unit provides a benefit to consumers exactly equal to the cost of producing it.

Economic Profit

The gap between the total income and the sum of all expenses, covering both direct and indirect costs.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes by an infinite amount in response to any change in price; highly responsive.

Profit-Maximizing

A company's strategy aimed at adjusting their level of output to generate the highest possible profit.