Match Each Account to the Proper Account Description; Not All

question 54

Multiple Choice

Match each account to the proper account description; not all letters will be used.
-Cash

• A)Stocks and bonds of other companies held for the purpose of exercising control.
• B)An accumulation of the sum of the expense since the beginning of the benefit period.
• C)Outside ownership in the equity of consolidated subsidiaries.
• D)Machinery and tools, valued at historical cost.
• E)Monies due because expenses, such as salaries, are incurred in a different period than when the cash outlay occurs.
• F)The most liquid of assets, it may also include savings accounts.
• G)Goods on hand.
• H)A potential liability created by differing tax and reporting methods.
• I)Ownership and debt instruments readily converted to cash.
• J)An expenditure made in advance of the use of the service or good.
• K)Monies due from customers arising from sale or service rendered.
• L)The capital stock of residual owners.
• M)Bonds that can be exchanged for stock at the option of the holder.
• N)Undistributed earnings of the corporation.
• O)Shares of the firm's own stock that have been repurchased.
• P)Monies due for goods bought for use or resale.
• Q)Excess over legal par paid at time of sale.
• R)Nondepreciable real estate.
• S)Collections in advance of service.
• T)Securities that give the holder the right to buy additional shares of common stock at a fixed price.

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Definitions:

AFC (Average Fixed Cost)

The fixed costs (expenses that do not change with the level of production) divided by the quantity of goods or services produced, typically decreasing as production increases.

Marginal Cost

The cost increase that comes with producing an additional unit of a product or service.

Marginal Revenue

The heightened income realized from the sale of one more unit of a good or service.

Marginal Cost

The price involved in creating one more unit of a specific good or service.