The Balance Column in a Ledger Account Is

question 145

Multiple Choice

The balance column in a ledger account is:

• A)An account entered on the balance sheet.
• B)A column for showing the balance of the account after each entry is posted.
• C)Another name for the dividends account.
• D)An account used to record the transfers of assets from a business to its stockholders.
• E)A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.

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Definitions:

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Selling Price

The amount of money for which a product or service is sold to customers.

Raw Materials

The basic materials from which products are made, typically unprocessed or minimally processed before being used in manufacturing processes.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs.