When Constructing a Worksheet Accounts Are Often Needed That Are

question 219

Multiple Choice

When constructing a worksheet accounts are often needed that are not listed in the trial balance already entered on the worksheet from the ledger. Where should these additional accounts be shown on the worksheet?

• A) They should be inserted in alphabetical order into the trial balance accounts already given.
• B) They should be inserted in chart of account order into the trial balance already given.
• C) They should be inserted on the lines immediately below the trial balance totals.
• D) They should not be inserted on the trial balance until the next accounting period.

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Definitions:

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Diminishing Returns

A principle stating that if one factor of production is increased while other factors are held constant, the output per unit of the variable factor will eventually decrease.

Fixed Resources

Assets and inputs in production that remain constant regardless of the level of output.

Diseconomies of Scale

A condition in which a firm experiences an increase in average costs as it increases its output, due to factors such as inefficiencies or complexity.