Match the Terms with the Definitions

question 12

Multiple Choice

Match the terms with the definitions.

-Consists of the three basic accounting elements: assets = liabilities + owner's equity.

• A) account
• B) accounts payable
• C) accounts receivable
• D) accounting equation
• E) assets
• F) balance sheet
• G) business entity
• H) business entity concept
• I) business transaction
• J) drawing
• K) expenses
• L) income statement
• M) liability
• N) net income
• O) net loss
• P) notes payable
• Q) owner's equity
• R) revenues
• S) statement of owner's equity

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Definitions:

Total Fixed Costs

The total amount of expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Total Variable Cost

The sum of all costs that vary with the level of production, including materials and labor directly tied to the production volume.

Total Cost

The sum of all costs associated with producing a specific amount of a good or service, including both fixed and variable costs.

Technological Advance

The process of developing new technologies or improving existing ones, leading to better products, processes, or services.