After a Business Transaction Has Been Analyzed and Entered in the Journal

question 211

Multiple Choice

After a business transaction has been analyzed and entered in the journal, the next step in the recording process is to transfer the information to

• A)the company's bank.
• B)stockholders' equity.
• C)ledger accounts.
• D)financial statements.

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Definitions:

Opportunity Cost

The cost of foregone alternatives; the value of the best alternative given up when a decision is made to choose one option over another.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, representing the trade-off between different choices in the allocation of resources.

Opportunity Cost

Giving up possible gains from several options by choosing a particular one.

Bowed Outward

A description of the shape of a curve on a graph, such as the production possibilities frontier, indicating increasing opportunity costs.